State of Texas v. Precision Solar Controls, Inc.
The State of Texas, representing TxDOT, sued Precision Solar Controls, Inc., for breach of contract and warranty regarding allegedly defective traffic signals. Precision Solar filed a counterclaim for business disparagement, asserting the State waived sovereign immunity by initiating the suit. The trial court denied the State's plea to the jurisdiction. The appellate court affirmed, holding that by filing suit, the State waives its sovereign immunity against germane counterclaims, even if they are intentional torts, as the core facts concerning the signals' quality and warranty performance are common to both claims.