Dan Reed (Ted McGinley) is the mayor of the small town of Trapper Falls, Alaska, and Christmas has always been a big part of the traditions of the town. However Dan's high school rival, Mitch Bright (Daniel Baldwin), has come back to the town after many years of being a successful lawyer in San Francisco. Mitch, who's now an atheist, takes offense over the overtly religious Christmas displays on the town's public property and starts a lawsuit for allegedly being in breach of the Establishment Clause.
Compare to Last Ounce of Courage, another Christian film released around the same time with pretty much the same premise.
Christmas with a Capital C provides examples of:
- Ad Hominem: Most of the protagonists' arguments against Mitch are just this - he's mean, hates God/religion, etc. Well okay, but he's also legally right. They briefly acknowledge this, but it's quickly brushed away in favor of more attacks on his character.
- Appeal to Tradition: Dan argues that the religious Christmas displays have been always a tradition of the town, and now someone wants to destroy them.
- Cool Uncle: Greg is portrayed as this for Dan's children.
- "Could Have Avoided This!" Plot: One minor character put up a "Happy Holidays" sign that has replaced "Merry Christmas" and has the quite reasonable suggestion that the city do something similar with their Nativity display - open it up for any other religious displays. This is dismissed by the mayor, though.
- Hollywood Atheist: Mitch is a condescending liberal who hates religion and believers, but secretly resents them for their unity. Not only that, but it's revealed that the reason he returned to his hometown is because he'd lost all his money in the city and wanted to ruin the celebration for everyone.
- Hollywood Law:
- Dan's defense of the display of religious Christmas imagery on the town's public property just consists of him saying that "it has been done for years and nobody has complained before". The breaking of the law is never justified by the fact that others have been doing it before, just never being caught.
- At the end of the film, upon realizing the error of his ways, Mitch drops his lawsuit. Even if this was the case, there's still the fact that the town was found in breach of the law.
- Hypocrite: Both Dan and Greg think the idea of people getting offended by saying "Merry Christmas" is ridiculous and don't think they should be forced to say "Happy Holidays" because of it. Yet when other people (namely a store owner and Greg's girlfriend) choose to say "Happy Holidays", both Dan and Greg are shown getting outraged by this and complain to them about how they should be saying "Merry Christmas", because not doing so upsets them.
- Just Eat Gilligan: The township of Trapper Falls could've avoided the controversy with either of two simple solutions - move the religious displays onto private property, or open up the public space to allow displays of other faiths alongside the Christian ones (they don't even necessarily have to display them if no one else wants them, just announce that they're open). This is the same practice that almost completely avoids this conflict in Real Life; for instance, under these rules, somebody's been displaying a Festivus Pole at the Illinois State Capitol for the last several years.
- Looks Like Jesus: Greg, who has auburn long hair and a full beard.
- Political Correctness Is Evil: The film is a big piece of propaganda against the "War on Christmas".
- Dan's brother, Greg, goes on a tirade (that goes viral online) saying how he won't be forced to capitulate into wishing "Happy Holidays" and proudly states "Merry Christmas".
- Dan himself outright complains of now being forced to wish "Happy Hanukah" or "Joyous Kwanza".
- Reasonable Authority Figure: The judge that rules in favor of Mitch is actually sympathetic to Dan's plight as she says that it would be a shame if the town had to take down its Christmas displays, and even proposes a compromise in which the town would open the public space for Christmas displays of non-religious nature, or allow for other faiths to have their display too. Dan rejects this, saying that "it goes against the traditions of the town".
- The Rival: Mitch is known by everyone to have been Dan's rival from high school even after more than 20 years. Upon his return to the town their rivalry is reignited, and he even considers running for mayor against Dan.
- Token Minority: Two of the town councilors are the only people of color in the film.
- Title Drop: "It's Christmas with a Capital C. You know why? Because it's from Christ the Lord."
- Victory Is Boring: Mitch wins his lawsuit against the town, but he is revealed to be secretly miserable, and winning left him lonelier than ever.
- War On Straw: The validity of Mitch's legal arguments is glossed over by the movie, and instead he is portrayed as a snobbish liberal "elite" who in reality secretly hates religion and Christmas and wants to ruin it for everyone.
- Whole-Plot Reference: The movie has been described by critics as a Christian version of How the Grinch Stole Christmas!. Bonus points for "Mitch" sounding close to "Grinch".
