May 3, 1948: The Supreme Court rules that covenants prohibiting the sale of real estate to minorities are unenforceable

Saturday 3 May 2008

Restrictive covenants created segregated neighborhoods by prohibiting homeowners from selling real estate to nonwhites, Jews and other ethnic groups. Because these covenants were private agreements, some people argued that no state action was involved in creating segregated neighborhoods and, thus, they did not violate the 14th Amendment. Such covenants were especially common in the North, where segregation was often illegal.

The Supreme Court inhibited the use of restrictive covenants in Shelley v. Kraemer. The Court conceded that the covenants themselves constituted private action and therefore did not violate the 14th Amendment. However, because state courts enforced the covenants, the Court found unconstitutional state action.