In the case of Shelley v. Kraemer (334 U.S. 1 (1948)), the Shelleys were a black family trying to buy into a neighborhood with a racist covenant that forbid sales to non-whites. Shelly argued that this was a violation of the 14^th Amendment. Kraemer argued that it wasn't because it was a private deal and the 14^th Amendment only bound the government. The US Supreme Court found that since Kraemer was relying on the government (specifically the courts and police) to enforce the covenant, they were bound by 14^th Amendment restrictions.

• The US Supreme Court found that the only way that a covenant would not be bound was if it was completely voluntary and relied on no judicial enforcement whatsoever.