Master Supreme Court held that judicial enforcement of racially restrictive covenants is unconstitutional state action under the Fourteenth Amendment. with this comprehensive case brief.
Shelley v. Kraemer is a foundational Supreme Court decision at the intersection of constitutional law and property law. At a time when racially restrictive covenants were a common tool for segregating American neighborhoods, the Court confronted whether state courts could use their judicial power to enforce private agreements that excluded people from property based on race. The case did not purport to regulate private bias directly; rather, it addressed the crucial constitutional boundary between private conduct and state action.
The Court’s answer—that judicial enforcement of such covenants is itself state action forbidden by the Equal Protection Clause—reoriented both civil rights and state action doctrine. Shelley established that courts are not neutral bystanders when they enforce discriminatory agreements; they are agents of the state, and their decrees carry the state’s imprimatur. The decision rendered racially restrictive covenants unenforceable nationwide, paving the way for later statutory reforms and civil rights advances, while clarifying that the Constitution limits the state’s participation in private discrimination.
Shelley v. Kraemer, 334 U.S. 1 (1948)
In 1911, a group of white homeowners in a St. Louis neighborhood entered a racially restrictive covenant providing that for 50 years no property within the described area would be sold or occupied by anyone not of the Caucasian race (expressly excluding those of the "Negro or Mongolian" races). In 1945, J.D. Shelley and his wife, African American purchasers, bought a home at 4600 Labadie Avenue without actual knowledge of the covenant. After the sale, neighboring property owners, including the Kraemers, sued in Missouri state court to enforce the covenant and to bar the Shelleys from occupying the property. The trial court declined to enforce the covenant, but the Missouri Supreme Court reversed, holding the covenant valid and enforceable. A companion case from Michigan, McGhee v. Sipes, involved a similar covenant enforced by the Michigan Supreme Court. The U.S. Supreme Court granted review in both cases and consolidated them to address whether state court enforcement of racially restrictive covenants violates the Fourteenth Amendment.
Does judicial enforcement by state courts of racially restrictive covenants constitute state action that violates the Equal Protection Clause of the Fourteenth Amendment?
Private parties may voluntarily adhere to racially restrictive covenants without implicating the Fourteenth Amendment, which restricts only state action. However, when state courts enforce such private agreements, that enforcement constitutes state action attributable to the state. State action that effectuates racial discrimination in the acquisition, use, and enjoyment of property violates the Equal Protection Clause. Consequently, state courts may not enforce racially restrictive covenants.
Yes. Judicial enforcement of racially restrictive covenants is state action, and enforcing such covenants to deny property rights based on race violates the Fourteenth Amendment’s Equal Protection Clause. The Court reversed the state court judgments enforcing the covenants.
The Fourteenth Amendment constrains state, not purely private, conduct. The Court emphasized that the judiciary is a state actor; when courts issue injunctions or judgments that give effect to private covenants, the state’s authority is invoked. Thus, even if private parties may enter racially discriminatory agreements, the Constitution forbids the state from lending its coercive power to implement them. The Court rejected the argument that judicial enforcement is a neutral application of property and contract rules, reasoning that the practical effect of enforcement is to deny persons of a designated race equal access to real property. Because the covenants explicitly barred ownership or occupancy by non-Caucasians, state-backed enforcement would deny equal protection by restricting property rights solely on racial grounds. The Court distinguished earlier decisions suggesting otherwise, noting that prior cases either did not squarely address the state action question or arose in different constitutional contexts. The Court underscored that the Equal Protection Clause secures to all persons the right to acquire, own, and enjoy property without discriminatory state interference. While private individuals remain free to hold discriminatory preferences absent state involvement, the Constitution prohibits the state from participating in or legitimating such discrimination through its courts. Applying these principles, the Court concluded that the Missouri and Michigan courts’ enforcement of the covenants constituted unconstitutional state action. It therefore reversed the judgments and directed that the covenants not be enforced.
Shelley v. Kraemer is a cornerstone of the state action doctrine and a critical milestone in civil rights law. It clarifies that courts themselves are state actors and that their enforcement of private discrimination triggers constitutional scrutiny. The decision did not ban the mere existence of discriminatory covenants but rendered them legally toothless by forbidding state enforcement. For law students, Shelley illustrates how constitutional principles shape private law remedies. It bridges property law (real covenants and equitable servitudes) and constitutional constraints on judicial enforcement, setting the stage for subsequent cases like Barrows v. Jackson (prohibiting damages actions to enforce such covenants) and for legislative developments such as the Fair Housing Act of 1968. Shelley’s state action analysis remains a touchstone for evaluating when private conduct becomes constitutionally attributable to the state.
Not in their private, voluntary existence. The Court held that the Fourteenth Amendment does not reach private conduct as such. However, it barred courts from enforcing racially restrictive covenants. Without judicial enforcement, these covenants became practically unenforceable. Later statutes and state laws often declared such covenants void or unlawful.
Because the key question was whether judicial enforcement of private agreements counts as state action. The Court held that when courts enforce private covenants, they exercise state power. That enforcement transforms private discrimination into state action, triggering Equal Protection constraints.
Shelley acknowledges that private covenants can run with land and be enforceable in equity under state law, but it imposes a constitutional limit: if enforcing a covenant would cause racial discrimination in property ownership or occupancy, state courts cannot provide remedies (injunctions, specific performance, damages) to give effect to that covenant.
Shelley forecloses injunctive and specific performance remedies to exclude buyers or set aside sales based on racial covenants. Barrows v. Jackson extended this principle to damages actions, holding that awarding damages for breach of a racially restrictive covenant would also constitute unconstitutional state action.
By eliminating judicial support for racially restrictive covenants, Shelley undermined a major tool of residential segregation. It also cemented the principle that courts are state actors for Equal Protection purposes, informing later state action cases and supporting legislative reforms, including the Fair Housing Act and broader civil rights enforcement.
Shelley v. Kraemer redefined the boundary between private discrimination and constitutional accountability by recognizing courts as state actors whose enforcement decisions can violate Equal Protection. The ruling dismantled the legal enforceability of racially restrictive covenants and signaled that the judiciary cannot be used to implement racial exclusion in housing.
Beyond its immediate impact on property transactions, Shelley endures as a doctrinal anchor for state action analysis and as a reminder that procedural neutrality cannot sanitize discriminatory outcomes when the machinery of the state is engaged. It remains essential reading for understanding how constitutional law shapes, and limits, the enforcement of private agreements.