In the case of Wallace et al. v. Virginia, 1965, the U.S Supreme Court ruled in favor of a group of African American plaintiffs who had been denied service at a restaurant in Virginia on racial grounds. The court held that this was a violation of their Fourteenth Amendment rights to equal protection under the law and due process. The defendants argued that because they operated privately owned establishments, they were not subject to these constitutional provisions; however, the court rejected this argument stating that when private individuals or groups receive significant state support or benefits (such as licenses), they become actors for the state and are therefore bound by its constitutionally mandated obligations not to discriminate based on race.

In the dissenting opinion for Wallace et al. v. Virginia, the justice argued that there was no constitutional violation in this case as it pertained to a state's right to regulate its own internal affairs, including education policies and practices. The justice believed that the majority had overstepped their bounds by intervening in what should be a matter of state jurisdiction. They contended that while racial discrimination is indeed unconstitutional, not every instance of racial imbalance or disparity can be attributed to discriminatory intent or practice on part of the state authorities; some may simply reflect societal realities beyond their control. Therefore, they felt it was inappropriate for federal courts to impose desegregation plans without clear evidence of intentional segregation by school officials.