Judge Rejects State’s Argument in South Dakota Sinkhole Case

May 25, 2021

A judge has rejected the state of South Dakota’s argument that homeowners in a Black Hawk neighborhood lack legal standing to seek damages due to a sinkhole.

The Rapid City Journal reports Judge Kevin Krull’s May 14 ruling may now proceed with class-action status, which would include any resident affected by the sinkhole that exposed an abandoned gypsum mine in April 2020.

More than 40 people from 15 homes were forced to evacuate due to the sinkhole and mine.

Thirty Hideaway Hills residents signed onto the lawsuit against the state in Meade County in October. The complaint says the state should compensate residents with money from the South Dakota Cement Plant Trust, which had a more than $333 million balance as of Sept. 30, 2020.

A second lawsuit is on hold as plaintiffs wait for the South Dakota Supreme Court to decide whether to overturn a Meade County judge’s decision to dismiss the county and former commissioners from the lawsuit.

Hideaway Hills residents are also seeking answers to a potential loss of sewage service due to the mine.