In accordance with procedural rules set by the Board of Regents, the president of the University informed Roth he would not be rehired for the next academic year, giving him no reason for the decision and no opportunity to challenge it in any sort of hearing.

Roth brought suit in federal district court alleging that he was being punished for statements he had made that were critical of the university administration.

He also alleged that the university's failure to provide a hearing violated his Fourteenth Amendment right to procedural due process of law.

In an opinion delivered by Justice Stewart, the Supreme Court held that the Fourteenth Amendment does not require an opportunity for a hearing prior to the nonrenewal of a nontenured state teacher's contract, unless he can show that the nonrenewal deprived him of an interest in "liberty" or that he had a "property" interest in continued employment, despite the lack of tenure or a formal contract.

Justice Douglas dissented, writing "When a violation of First Amendment rights is alleged, the reasons for dismissal or for nonrenewal of an employment contract must be examined to see if the reasons given are only a cloak for activity or attitudes protected by the Constitution."