Although cities enjoy sovereign immunity from suit when they act in a sovereign capacity, they can be sued by tenants of land they have leased when they act in a “proprietary” capacity. Wasson Interests, Ltd. V. City of Jacksonville, 2018 Tex. LEXIS 999 (Tex. 2018). Cities act in a governmental capacity (and are immune from suit) when they perform traditional government functions for the benefit of the public or when they act at the direction of the state. Here the court found that the leases were made  in a proprietary fashion (a) when they engage in acts solely for the benefit of those in the cities; and (b) when it had no obligation to lease the lots to private parties; and (c) it was not acting as a branch of the state when it leased the property.