Ruffier v. Volcano Hills: Assessment Increase Voided (CA)

Quick Answer

On December 15, 2025, the Third District Court of Appeal decided Ruffier v. Volcano Hills Road Maintenance Association and directed the trial court to declare that a board's assessment increase from $200 to $1,000 was void. Members had voted in 2019 to remove a $200 cap in the governing documents, but the court held that removing the cap did not by itself give the board authority to raise assessments five-fold. The increase still had to comply with the statutory limits on assessment increases in Civil Code section 5605.

Facts

The association was formed in the 1970s to maintain private roads serving 22 parcels in Amador County. At its June 2019 annual meeting, members voted to eliminate the governing documents' $200 annual assessment limit. A month later the board raised the annual assessment from $200 to $1,000. Members sued, arguing the increase was invalid, in part because the board did not obtain approval from a majority of a quorum of members. The trial court declined to declare it invalid. The Court of Appeal reversed.

The Rule

As summarized by Adams Stirling PLC, the court held that even if governing documents impose no cap, an increase must comply with Civil Code section 5605. In general, a board may not impose a regular assessment more than 20 percent above the prior year's assessment without approval of a majority of a quorum of members, unless the board has distributed the annual budget report on time as section 5300 requires. Because the association did neither, the increase was void.

Why It Matters

• A vote to remove a cap is not a vote to raise assessments. Each increase still has to meet the statute.
• The budget disclosure matters. Distributing the annual budget report on time is what lets a board increase assessments up to the statutory limit without a member vote.
• Small associations are covered too. This was a road association, but the same Davis-Stirling provisions apply to other common interest developments.
• Document everything. Keep proof of budget distribution dates and member votes.

Board Checklist

• Calculate any proposed increase against last year's regular assessment.
• Distribute the budget report within the statutory window, and keep proof.
• If the increase exceeds the limit, hold a member vote that meets quorum and approval requirements.
• Review your governing documents for assessment caps and procedures.

See our special assessments guide and the reserve study guide for budget planning.

How APM Helps

APM prepares budgets, tracks disclosure deadlines and supports member votes. See our California resources or contact us.

Source: Ruffier v. Volcano Hills Road Maintenance Association (Cal. Ct. App., 3d Dist., Dec. 15, 2025), as summarized by Adams Stirling PLC.

This article is general information, not legal advice. Court summaries are based on the published opinion and law-firm case summaries; read the opinion and consult your association's attorney before relying on it. Last verified October 24, 2026.