Requiring that all parties mediate "in good faith" causes a lot of conflict where one party thinks the other is not acting in "good faith". In the following example please decide whether you think each party is negotiating in good faith or not and why.

Party One and Party Two enter into an agreement which requires payment by Party Two each month. Party Two stops making payments and is therefore in default of the agreement. Party One commence litigation against Party Two. Both Parties are required by the Court to go to Mediation. At Mediation, Party Two wants Party One to renegotiate the agreement for a lower payment each month and a longer term. Party One says renegotiating the agreement is not an option. Party One is only willing to either: 1) accept all the missing payments and go back to the original agreement, 2) accept less than what they are owed and cancel the agreement, or 3) move forward with the litigation. Party Two thinks Party One is not negotiating in good faith because they will not consider renegotiating the terms of the agreement. Party One thinks Party Two is not negotiating in good faith because they will not consider the options Party One is offering.