In June 1984, the Reagan administration sued Starrett City over the racial quota system, stating that it violated federal anti-discrimination laws. The original accord was approved by federal judge Edward Raymond Neaher of the U.S. District Court for the Eastern District of New York in April 1985, but the ruling did not affect the Reagan administration's lawsuit. In 1987, Neaher ruled on the federal government's lawsuit, stating that the quotas violated the Civil Rights Act of 1968 and thereby invalidating the quotas. In March 1988, the United States Court of Appeals for the Second Circuit ruled that the lower court's order to prevent quotas must stand. The case was appealed to the Supreme Court in late 1988, and the court ruled against Starrett City Associates. By 1988, under Starrett City Associates' quota system, 62% of apartments were rented to whites, 23% to blacks, 9% to Hispanics and 6% to other minority groups.