Ferguson, a subcontractor, sued Harris County Sports & Convention Corp. (HCSCC) over defective work at Reliant Stadium. HCSCC tried to dismiss the case by claiming governmental immunity. The Texas Court of Appeals ruled that HCSCC waived its immunity by filing a counterclaim seeking money from Ferguson. The court reversed the dismissal and sent the case back to trial, meaning Ferguson can proceed with his lawsuit.
If a government entity sues you back with a counterclaim, they may lose their immunity shield—your claims can move forward even if they initially tried to dismiss you
Counterclaims related to your original dispute can trigger a waiver of governmental immunity, so don't assume a government client is untouchable once they file a counterclaim
Document all defects and design problems carefully—this case shows courts will examine whether problems came from the contractor's work or the owner's design team