Wasson Interests, Ltd., Petitioner v. City of Jacksonville, Texas, Respondent

Summary

The Texas Supreme Court held that the proprietary‑governmental dichotomy, which distinguishes a municipality’s governmental from proprietary functions, applies to breach‑of‑contract actions just as it does to tort actions. Accordingly, a city is not immune from contract suits when it acts in a proprietary capacity. The Court reversed the Court of Appeals, which had held the opposite, and remanded for further determination of the lease’s character and any other summary‑judgment issues.