Medical Laundry Service v. Board of Trustees

The issue to be addressed in this opinion is whether plaintiff has a legally protected property interest, which is a prerequisite to plaintiffs procedural due process claim brought pursuant to 42 U.S.C. § 1983. In order to establish a procedural due process claim under the Fourteenth Amendment for deprivation of property, plaintiff must show that its contract with the state constitutes a protected property interest.

Plaintiff Medical Laundry Service held a contract with the University of Alabama in Birmingham for provision of laundry services to University hospitals in Birmingham. The contract…