How do disagreements between co-owners get resolved?

Most disagreements never escalate, RYDA Operations enforces the Operating Agreement consistently. For ones that do: mandatory mediation first, then arbitration under AAA rules.

Day-to-day governance

RYDA, as the LLC's hired service provider, performs most operational decisions (scheduling, service, condition issues) by applying the Operating Agreement consistently. The LLC remains member-managed, co-owners hold authority over material decisions, but day-to-day operations are delegated to RYDA via the Management Services Agreement. RYDA's authority is bounded by what the Operating Agreement and MSA explicitly delegate.

When co-owners disagree

Material issues, sale, replacement, modification, or expulsion of a delinquent member, require a vote per the OA's threshold (typically 75%). If a vote fails to reach threshold, the status quo continues until a new vote is called.

Formal disputes

If a member believes the LLC, RYDA, or another member has materially breached the Operating Agreement, the OA requires:

  • Written notice with 30 days for cure.
  • Mandatory mediation (60 days) with a neutral mediator.
  • If mediation fails: binding arbitration in under AAA rules under AAA rules.
  • Litigation only as a last resort, with a forum-selection clause.
Disputes are rare. The Operating Agreement is well-drafted, RYDA enforces consistently, and the small-group nature of co-ownership encourages co-owners to talk things out before formal escalation.

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