In the 1973 case of Pernell v. Southall Realty, the United States Supreme Court ruled that a real estate company violated Washington D.C.'s housing code by selling a property without obtaining a certificate of occupancy. The plaintiff, Mr. Pernell, had purchased a house from Southall Realty but later discovered it was in violation of several building regulations and unfit for habitation due to its dilapidated state. He sued under an implied warranty theory arguing that by selling him the property without disclosing these violations or obtaining necessary certifications, Southall Realty breached their duty as sellers. The court agreed with Pernell's argument and held that there is an implied warranty on all residential properties sold in Washington D.C., stating they must be free from any substantial housing code violations at time of sale unless otherwise disclosed to buyer prior to purchase.

In the dissenting opinion for Pernell v. Southall Realty, Justice Douglas argued that the majority's decision was a departure from established precedent regarding eviction procedures. He contended that the court had previously ruled in Lindsey v. Normet that state laws allowing summary eviction without a hearing were unconstitutional due to violating tenants' rights to due process under the Fourteenth Amendment. In this case, he believed that Washington D.C.'s law permitting landlords to evict tenants without providing them an opportunity for a full judicial hearing also violated these constitutional protections. Furthermore, he asserted that there was no compelling reason provided by either party or by public policy considerations to justify such an infringement on tenant rights and thus disagreed with his colleagues who upheld this practice as lawful.