Courts generally presume that a lawsuit has been filed in good faith, and a party moving for sanctions against the party who filed a lawsuit or claim must overcome this presumption to prove abuse of the judicial process. Thus, courts distinguish between (1) claims that are ultimately found to be merely groundless (and thus not sanctionable) and (2) claims that are ultimately found to be both groundless and brought in bad faith or for the purpose of harassment (and thus sanctionable). The sanctions rules generally do not require a party or its attorney to be right; they require the party or its attorney to make a reasonable inquiry into the facts and the laws related to the claims.

Contempt of court is broadly defined as disobedience to or disrespect of a court by acting in opposition to its authority. Contempt of court may be punished by the court with civil and criminal sanctions or penalties.

In Delaware, as in many jurisdictions, there is a legal presumption that lawsuits are filed in good faith. For a party to face sanctions for filing a lawsuit, the opposing party must demonstrate that the lawsuit constitutes an abuse of the judicial process. Delaware courts make a clear distinction between claims that are without merit (not sanctionable) and those that are both meritless and filed with malicious intent or to harass (sanctionable). The rules on sanctions do not demand that a party or their attorney be correct in their legal position; rather, they must have conducted a reasonable investigation into the facts and applicable laws before filing claims. Regarding contempt of court, Delaware recognizes it as an act of disobedience or disrespect towards the court's authority, which can be met with either civil or criminal sanctions. This can include a variety of behaviors that defy a court's order or disrupt its proceedings.