At issue in ACLU v. Schundler was the constitutionality of two different city-sponsored holiday displays. The first display, erected on the grounds of the Jersey City Hall Plaza, contained a crèche and menorah. The second display, constructed in the same location a year later, contained the same items, but also included Santa Claus, Frosty the Snowman, and a red sled. The U.S. Court of Appeals for the Third Circuit concluded that both holiday displays violated the Establishment Clause. Applying the Endorsement Test first articulated by Justice O’Connor in Lynch v. Donnelly, the court asked whether the display conveyed a message of approval to adherents or disapproval to non-adherents. The court noted that a crèche represents the core belief that Jesus Christ was born to the Virgin Mary to lead humankind on the path toward salvation. Unlike a Christmas tree or other secular items associated with the Christmas holiday, a crèche is an overtly religious display that has no secondary secular meaning. When placed together with the menorah, the court found, the religious significance of both items was emphasized. Merely placing a Christmas tree or sled next to these religious items did not detract from their religious message. Further, the court found it irrelevant that the displays contained items from more than one religion. It was not solely the pluralistic nature of the displays in cases like County of Allegheny v. ACLU that made them acceptable; it was also the emphasis in the displays on the secular aspects of the holidays. The court held that government celebration of one particular religion, or even more than one religion, can constitute government endorsement that violates the Establishment Clause by sending a clear message to non-adherents that they are outsiders. In this case, the city conveyed that message of exclusion through the funding and construction of these displays on city property and their inclusion of overtly religious items.
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