Fred Claus

In the Middle Ages, the young boy Fred Claus eventually gets a younger brother named Nick. He grows up in the shadow of the younger, due to Nick's selfless and kind attitude which constantly wins the approval of their family over Fred. Their strained relationship is permanently damaged when Nick cuts down a tree, inadvertently destroying the bird house in which Fred's bird Chirp Chirp lived. Due to Nick's generous and helpful personality, he is deemed a Saint, and the family is gifted with immortality.

In the present, Saint Nick has become the modern-day Santa Claus, delivering gifts to the children of the world, while Fred has become a Chicago repossession agent. He lives alone and is friends with orphan Samuel "Slam" Gibbons. In an attempt to raise seed money to open an illegal casino plan, Fred is arrested for collecting donations, similar to a Salvation Army employee, but has no permit. His girlfriend Wanda then breaks up with him, as he unintentionally stood her up for her birthday dinner, and he is fired from his job.

Fred asks Nick for bail and the seed money. He only agrees on the condition that he comes to the North Pole to work for the money. Just before leaving, Slam asks Fred to pretend to be his father but ends up being taken away and sent to an orphanage.