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The tar may just be a piece that was discarded and when it got warm came up through the soil/pavers. I cant see any of the tar from the wall coming past the polymer and the styrofoam. That is pretty unlikely. If the contractof finds that the styro or poly has slipped or shifted then yes they will have to dig it back up and repair at least that part.
The soil coming down the hill needs to be channelled away from the building, or a retaining wall built to stop it from getting onto the patio or around the wall to the property where it can affect the home. If the soil is bare it needs burlap netting placed over it to stop the erosion until plants or grasses can get a foot hold and prevent the erosion.
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