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 New York, the legal framework acknowledges the presumption that lawsuits are filed in good faith. To impose sanctions for frivolous litigation, the moving party must demonstrate that the opposing party's lawsuit was not only without merit but also filed in bad faith or for purposes of harassment. New York's judiciary law and rules of court, such as Rule 130-1.1 of the Rules of the Chief Administrator, outline the standards for conduct and the imposition of sanctions. These rules mandate that attorneys and parties conduct a reasonable inquiry into both the facts and the applicable law before filing claims or motions. As for contempt of court, New York recognizes both civil and criminal contempt as set forth in Judiciary Law Article 19. Civil contempt generally involves failure to comply with a court order, potentially resulting in fines or imprisonment until compliance. Criminal contempt involves actions that disrespect the court or obstruct justice, and can lead to fines and a definite term of imprisonment. Both forms of contempt are serious and carry significant consequences to enforce the authority of the court.