Ruling Favors State Due to Sovereign Immunity
A South Dakota judge has dismissed a lawsuit filed by dozens of residents from the Hideaway Hills subdivision near Rapid City, whose homes were built above an old underground mine that has caused dangerous sinkholes in the area. Circuit Court Judge Eric J. Strawn granted the state’s motion for summary judgment, ruling that South Dakota is protected by sovereign immunity, which shields it from such lawsuits.
The ruling, posted online Wednesday, ended the neighbors’ attempt to hold the state accountable for the mine-related problems. However, the plaintiffs’ attorney, Kathy Barrow, confirmed that they will appeal the decision to the South Dakota Supreme Court.
Residents Blame State for Mine-Related Sinkholes
The plaintiffs argue that the state’s mining operations and the manner in which it closed the gypsum mine decades ago led to the sinkholes that have plagued the neighborhood. They also claim that the state failed to inform residents of the risks associated with the mine beneath their homes.
Attorney Kathy Barrow stated that her clients are seeking clarification from the state’s highest court regarding the “blurred lines” in the legal theory behind their claims, particularly whether the state can be held liable for creating conditions ripe for the sinkholes.
Ongoing Damage in the Hideaway Hills Subdivision
The lawsuit, originally filed in 2020, came after a massive sinkhole opened up in the neighborhood, revealing the full extent of the abandoned mine beneath. Since then, more sinkholes and ground sinkings have appeared, causing significant damage to houses, roads, and utilities. Homeowners, about 150 residents in 94 homes, are seeking $45 million in damages.
The area was mined for gypsum decades ago by the former state-owned cement plant. Attorneys representing the state have argued that the plant’s activities did not involve underground mining and that the land collapse would have happened regardless of the plant’s operations.
Next Steps: Appeal to the South Dakota Supreme Court
Despite the setback, the plaintiffs remain determined to press their case in the state Supreme Court. If successful, they hope to reverse the ruling and proceed with their claims against the state for damages caused by the mine’s collapse.
Neither Gov. Kristi Noem nor her spokesperson, Ian Fury, responded to requests for comment following the ruling. The outcome of the appeal could have wide-reaching implications for the state’s responsibility in managing former industrial sites.
