Barrows v. Jackson
Facts
Petitioners and respondent were owners of residential real estate in the same Los Angeles neighborhood and were subject to an agreement providing that the property should not be used or occupied by persons not wholly of the white or Caucasian race, except certain domestic servants or employees. Petitioners alleged respondent breached the covenant by conveying her property without including the restriction in the deed and by permitting non-Caucasians to move in and occupy the premises. Petitioners sought damages at law rather than equitable enforcement. The California courts dismissed the complaint on the ground that, after Shelley v. Kraemer, such a covenant could not be enforced through a damages action.
Issue
May a state court enforce a racial restrictive covenant by awarding damages against a covenantor who breaches it, even though such covenants may not be enforced in equity under Shelley v. Kraemer? Also, may the defendant in that damages action invoke the equal protection rights of the non-Caucasian persons who would be excluded by such enforcement?
Rule
Although a racial restrictive covenant is not itself invalid merely because it exists and may be voluntarily observed, state judicial enforcement of such a covenant through an award of damages is state action. When such enforcement would coerce continued discrimination and thereby deny non-Caucasians the ability to purchase, own, and enjoy property on the same terms as Caucasians, it violates the Equal Protection Clause; in the unique circumstances of such a case, the defendant may assert those third parties' rights.
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