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 Vermont, as in other jurisdictions, there is a legal presumption that lawsuits are filed in good faith. To impose sanctions for abuse of the judicial process, the moving party must demonstrate that the opposing party's lawsuit was both groundless and filed with improper motives, such as bad faith or harassment. Vermont's rules, similar to the Federal Rules of Civil Procedure, require that attorneys and parties conduct a reasonable investigation into the facts and applicable law before filing claims. This standard does not demand that the claims be ultimately successful, but rather that they be reasonably based on law and fact at the time of filing. Regarding contempt of court, Vermont recognizes this as an act of disobedience or disrespect towards the court's authority, which can be met with either civil or criminal sanctions. The specific rules and procedures for sanctions and contempt are outlined in Vermont's statutes and court rules, which guide how such matters are to be handled by the courts.