Sinkholes threaten Rt. 2, lawsuit alleges

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Ohio Attorney General Dave Yost is suing the U.S. Gypsum Company for nearly $17 million over what he says is the company’s failure to maintain underground mines that caused dangerous sinkholes near State Rt. 2 in Ottawa County, threatening the roadway’s stability.
The lawsuit, filed on behalf of the Ohio Department of Transportation, seeks to recover $16.8 million in costs incurred by ODOT to stabilize the roadway and prevent its collapse.
“U.S. Gypsum’s failure to uphold their responsibility has put Ohio’s taxpayers in a multi-million-dollar hole,” AG Yost said. “We’re holding them accountable for the money it took to fill it and keep State Route 2 from crumbling.”
The case dates from 1965, when USG sold land to ODOT to build State Route 2 above the company’s underground gypsum mines. The purchase agreement required USG to maintain the integrity of the mines to ensure the highway’s stability.
As Yost’s lawsuit alleges, however, USG filed a quit claim deed in 1977, withdrawing its commitment to maintain the mines but failed to notify ODOT about the filing or seek the department’s approval.
In the ensuing decades, Route 2 developed into a main thoroughfare for travelers in the Marblehead, Kelleys Island, and Cedar Point tourism areas. USG continued to engage in discussions with ODOT regarding potential earth movement along the route resulting from sinkholes developing, but by the early 2000s – again without notifying ODOT – the company filed paperwork to legally end its offer to monitor the highway.
The company continues to operate its construction materials business as well as a factory in Ottawa County.
In 2013, concerns about the potential collapse of Route 2 prompted ODOT to proceed with a $20 million project to stabilize USG’s mines near the highway by injecting grout into flooded underground gypsum tunnels.
The money that the lawsuit seeks from USG is directly related to the mine stabilization costs, Yost said.
The lawsuit was filed in the Ottawa County Common Pleas Court.
“In the 1965 warranty deed conveyance, USG covenanted to provide vertical and lateral support for areas of its mine below S.R. 2, independent of its separate absolute common law duty to maintain support of the surface,” the lawsuit says.
Contacted by email, the company issued the following statement:
“It is USG's policy not to comment on any pending litigation. However, we can confirm that we have seen a copy of the complaint that was filed on January 13, 2025.
“From our reading of the complaint, the Ohio Department of Transportation is only seeking to recover legacy costs that were incurred by it for work on State Road 2 that occurred a decade or more ago. The complaint does not allege any imminent risk to public safety. Safety is our top priority for both our employees and our community. To that end, USG monitors and conducts regular inspections of its closed mine areas. USG will fully respond to the state's allegations in court.”