Isabella and Frank have been the best of friends ever since they met in university ten years ago. Two years ago, they started a software company called MATAMA Inc., with Isabella and Frank each owning 50% of the company. At the time, they both agreed that it would be a good idea to include a non-compete clause in their contract. They were optimistic and believed the company would do well because Isabella is an experienced programmer with lots of expertise designing apps and Frank's strength is his business savvy and ability to turn struggling companies into successful businesses.

In her free time, Isabella created a photo-editing app called 'Mandy's Visual Creations'. This app became a huge success selling over a million downloads. Frank found out about the app and became outraged. He reminded Isabella that according to the employment contract, all of Isabella's creative energy belonged to MATAMA Inc., and therefore the app belonged to MATAMA Inc. Further, Frank also claimed that all the revenues from 'Mandy's Visual Creations' belonged to MATAMA Inc.

Isabella refuted Frank's claim, stating that she had tabled her app idea at multiple board meetings with various investors present, and that Frank shot down her idea each time. She reminded Frank that he called her idea risky and unwise given the financial hardship MATAMA Inc. was going through, and because the market segment was extremely competitive. Isabella told Frank that she resented the fact that he didn't believe her idea could save the company. That is why she developed her app on her own time, using her own equipment outside of company hours. She then told Frank that for those reasons, she should have exclusive rights to the app and any revenue that it generates would be hers.

Isabella and Frank took part in a mediation because they wanted to resolve the conflict and continue to be partners in MATAMA Inc., but unfortunately, they were unable to reach a deal. Six months after the mediation Frank's fears came true and MATAMA Inc. went bankrupt.

The timing could not have been worse for Frank as the market crashed and his three businesses were forced to close. Frank ended up with no money, his car was repossessed and he was about to get evicted from his downtown apartment. Feeling overwhelmed, Frank grabbed a knife from his kitchen and locked himself in his washroom and began to cry. Unable to reach Frank, the landlord became concerned and called the police to have them do a wellness check.

You and your partner were dispatched to 123 Anywhere Street, in Toronto for a wellness check on Frank. Upon your arrival, you were met by the Frank's sister who told you everything that had been going on in Frank's life.

Based on the Conflict Circle, why do you think mediation failed?