The South Dakota Supreme Court heard arguments Wednesday in a case stemming from a massive 2020 sinkhole that displaced dozens of families in the Hideaway Hills neighborhood in Black Hawk. The 30-foot-deep collapse revealed homes had been built atop an old gypsum mine.
Homeowners sued the state, alleging it failed to disclose the risks and used inadequate materials to fill mine cavities while the land was publicly owned. A lower court dismissed the case, citing state immunity, but residents appealed.
State attorneys argue the damage occurred before the land was privatized, shielding the government from liability. They also claim the developer knew about the mine’s condition.
Homeowners insist the state’s actions directly contributed to the collapse and misrepresented the land’s safety. The Supreme Court will now decide whether the state can be held responsible for damages.
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