Shelley v. Kraemer

Facts

One August, 1945, pursuant to a contract of sale, petitioners Shelley, who are Negroes, for valuable consideration received from one Fitzgerald a warranty deed to the parcel in question. The trial court found that petitioners had no actual knowledge of the restrictive agreement at the time of the purchase. On October, 1945, respondents, as owners of other property subject to the terms of the restrictive covenant, brought suit alleging that petitioners Shelley should be restrained from taking possession of the property and that judgment be entered divesting title out of petitioners Shelley and revesting title in the immediate grantor or in such other person as the court should direct. The Missouri law declares that no part of the affected property shall be occupied to any person not of the Caucasian race, it being intended to restrict the use of said property against the occupancy as owners or tenants of any portion of said property for resident or other purpose by people of the Negro or Mongolian race. Not only does the restriction seek to proscribe use and occupancy of the affected properties by members of the excluded class, but the agreement requires that title of any person who uses his property in violation of the restriction shall be divested.