Violette

Introduction

Plaintiffs Rod and Helene Violette appeal from a judgment of the San Mateo County Superior Court dismissing their action against defendants Richard L. Shoup and ManEquity, Inc., following the court’s grant of summary judgment in favor of defendants. Plaintiffs contend the court erred in granting summary judgment. We shall affirm.

Statement of Facts

This action arose from the failure of plaintiffs’ investment in a wind energy tax shelter, Eagle Wind Partnerships, Ltd. (Eagle Wind). Rod Violette, a commercial airline pilot, had for many years engaged in a variety of speculative tax shelter investments. At the time of the Eagle Wind investment, he had passed an exam prescribed by the National Association of Securities Dealers and was a registered representative qualified to sell securities, had attended numerous seminars on tax shelters, had drafted his own prospectus in order to sell speculative oil and gas investments, and had sold partnership interests in speculative ventures. He had been employed for over 10 years preparing tax returns and providing tax and investment advice.

The Violettes annually selected an investment at year-end to substantially…