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 Wisconsin, the legal framework presumes that lawsuits are filed in good faith. A party seeking sanctions against another for filing a lawsuit must demonstrate that the lawsuit constitutes an abuse of the judicial process. Wisconsin courts make a clear distinction between claims that are without merit (not sanctionable) and those that are both meritless and filed in bad faith or for harassment (sanctionable). The rules on sanctions do not require a party or their attorney to be correct in their legal position, but they must conduct a reasonable investigation into the facts and law before filing claims. Regarding contempt of court, Wisconsin recognizes it as an act of disobedience or disrespect towards the court's authority, which can be met with either civil or criminal sanctions. The specific procedures and penalties for contempt and sanctions are detailed in the Wisconsin Statutes and case law, and they are designed to uphold the integrity of the judicial system while preventing the misuse of legal processes.