PER = CURIAM
The = State=20 sued Precision Solar Controls, Inc. for breach of contract, breach of = warranty,=20 and quantum meruit, alleging that traffic signal displays made by = Precision were=20 defective. Precision denied the State=92s allegations and counterclaimed = for=20 damages for business disparagement. The trial court denied the State=92s = plea to=20 the jurisdiction based on sovereign immunity, and, on the State=92s = interlocutory=20 appeal, the court of appeals affirmed. 188 S.W.3d 364 (Tex. = App.=97Austin=20 2006).
The = court of=20 appeals relied on our first opinion in Reata Construction Corp. v. = City of=20 Dallas, which we have since withdrawn and replaced. 197 S.W.3d 371 = (Tex.=20 2006). We held that a governmental entity that brings an action waives = immunity=20 from suit for claims that are germane to, connected with, and properly = defensive=20 to its action, to the extent of an offset. Id. at 373. The State = argues=20 that it has not by its action waived immunity for an intentional tort = claim like=20 Precision=92s. Such arguments should be further considered by the lower = court in=20 light of Reata.
Accordingly,=20 we grant the State=92s motion for rehearing, withdraw our order denying = its=20 petition for review, grant its petition, and, without hearing oral = argument,=20 vacate the court of appeals=92 judgment and remand the case to the trial = court for=20 further proceedings. Tex. R. = App.=20 P. 59.1.
Opinion=20 delivered: April 5, 2007