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It is a mitzva to judge people favorably, as we read, “Judge your fellow with righteousness” (Leviticus 19:15). This means that when another person’s actions are ambiguous and can be interpreted either positively or negatively, there is a mitzva to interpret them positively. Every person is a mix of good and bad, so almost every action can be interpreted positively or negatively. The question is which is primary. Through this mitzva, the Torah teaches us that virtue is primary, as people truly aspire to do good. Let us take this a step further. By judging one's fellow favorably, we change reality for the better, because we are reinforcing the positive elements within ourselves and within the other person.
The obligation to judge favorably is conditional upon the positive interpretation being reasonable. If it is very difficult to put a positive spin on another person’s action or speech, one does not need to judge favorably unless the other person is righteous. If they are, then even if they have done something difficult to interpret in a positive light, there is a mitzva to judge them favorably as long as there is some way to do so. This is logical, since for a righteous person the terrible thing one thinks one is seeing would be out of character. The more righteous a person is, the more reason demands we make efforts to judge them positively.
By contrast, when judging a wicked person, it is reasonable to assume the worst, even when the action can be interpreted favorably. Even though a wicked person may deep down aspire to be good, since they have chosen an evil path, it is reasonable to assume they are being consistent. Therefore, one should not judge them favorably.
