Sovereign immunity (also known as governmental immunity) in American law was derived from the British common law doctrine that the King could do no wrong—and thus could not be sued. Sovereign immunity varies from state to state, but typically applies to state governments as well as the federal government.

For example, sovereign immunity protects the state and its various provisions of state government—including agencies, boards, hospitals, and universities—from liability and from suit—unless the immunity has been waived. Similarly, sovereign immunity protects political subdivisions—including counties, cities, and school districts—from liability and from suit—unless the immunity has been waived.

Thus, sovereign immunity encompasses two principles: (1) immunity from suit and (2) immunity from liability. Immunity from suit bars a suit against the state or other governmental entity unless the Legislature expressly gives consent. Immunity from liability protects the state or other governmental entity from judgments even if the Legislature has expressly given consent to sue.

In some states, when a governmental entity contracts, it is liable on contracts made for its benefit as if it were a private person. Consequently, when a governmental entity contracts with private citizens it waives immunity from liability. But the governmental entity does not waive immunity from suit simply by contracting with a private person. Legislative consent to sue is still necessary.

But federal and state governments (generally the U.S. Congress and state legislatures) have the ability to waive their sovereign immunity. Waivers of sovereign immunity are usually included in state and federal statutes and interpreted and applied by state and federal courts in court opinions.

A party may establish legislative consent by referencing a statute or a resolution granting express legislative permission. Legislative consent to sue the state or other governmental entity must be expressed in clear and unambiguous language.

In Arkansas, sovereign immunity is a legal doctrine that prevents the state or its subdivisions, such as agencies, boards, and universities, from being sued or held liable in court without their consent. This principle is rooted in the idea that the state cannot do wrong and is therefore immune from litigation. Arkansas's sovereign immunity is enshrined in its state constitution and has been affirmed by the Arkansas Supreme Court. However, the state legislature can waive this immunity through clear and unambiguous statutes that allow for the state to be sued under certain conditions. For example, when the state enters into a contract, it may be liable as a private party would be, but this does not automatically waive the immunity from being sued; explicit legislative consent is still required. Additionally, political subdivisions like counties and cities also enjoy sovereign immunity, but this too can be waived by the legislature. It's important to note that any waiver of sovereign immunity must be expressly stated in the law, and courts will interpret these waivers narrowly.