Shelley v. Kraemer (1948) Definition

In this U.S. Supreme Court decision, the Court ruled that state courts violate the 14th Amendment equal protection clause when they enforce racially restrictive deed covenants. Because the equal protection clause is concerned with what's known as "state action," meaning actions by the government (and not private parties), racially restrictive covenants by themselves aren't unconstitutional. But when a state court acts to enforce a racially restrictive covenant, the state has acted in violation of the equal protection clause.

The practical effect of Shelley is that racially restrictive deed covenants (and similar discriminatory private contractual arrangements) are unenforceable. To the extent they still exist, they're simply ignored.