Reata Construction drilled into a water main while working on a City of Dallas fiber optic project and was sued for negligence. The City claimed governmental immunity to block Reata's counterclaim for the City's own negligence in misidentifying the water main location. The Texas Supreme Court ruled that when a city sues for damages, it loses immunity protection against the contractor's defensive claims that are directly related to and offset the city's claims.
If a government entity sues you for damages, you can countersue them for their own negligence—they can't hide behind immunity for claims that defend against their lawsuit