BLACK HAWK, SD – Homeowners in a South Dakota community say a high-stakes lawsuit before the state’s Supreme Court is their last realistic chance to recover catastrophic financial losses caused by a massive sinkhole.
The Hideaway Hills Crisis
The crisis began in 2020 when a massive sinkhole opened up in the Hideaway Hills subdivision in Black Hawk. The collapse occurred directly above land that was once mined for gypsum.
The initial collapse forced about a dozen households to permanently abandon their homes. Since then, roughly 150 nearby homeowners have lived in constant fear, stating that their properties remain at serious risk due to unstable ground.
The Battle for Accountability
Homeowners filed a class-action lawsuit seeking more than $60 million from the state. They argue that the former mine was not properly reclaimed before the property was sold for residential development.
While a lower court previously sided with the state in 2024, the dispute has now reached the South Dakota Supreme Court.
Geological experts note that a major breakdown in communication occurred years ago. Unlike neighboring states like Colorado—which utilize active mine-mapping services to prevent homes from being built on unstable land—South Dakota lacked the necessary oversight to catch the problem before construction began.
“We’re Pretty Much Done”
For the residents living on the edge of the condemnation zone, the emotional and financial toll has been devastating. Many feel completely abandoned by local lawmakers.
Local retiree Carolyn Lorge, who lives just two houses away from the evacuated area, expressed the community’s desperation regarding the upcoming Supreme Court ruling: “If the Supreme Court rules against us, we’re pretty much done. Somebody dropped the ball here, but no one wants to take any accountability.”
If the state’s highest court rules against the homeowners, residents will have no further legal avenues to recover the value of their ruined properties.
