Tennessee Code Title 49. Education § 49-2-1306

(b)(1) In any case or controversy involving performance or interpretation of an agreement made under this part or liability under the agreement, the public agencies party thereto shall be real parties in interest, and the state may maintain an action to recoup or otherwise make itself whole for any damages or liability that it may incur by reason of being joined as a party therein.

(2) Such action shall be maintainable against any public agency or agencies whose default, failure of performance or other conduct caused or contributed to the incurring of damage or liability by the state.