A Connecticut judge has concluded a contentious estate dispute involving the late legendary blues guitarist Johnny Winter, ordering his former manager, Paul Nelson, and Nelson's wife, Marion, to pay $226,000 in damages. The ruling addresses improper payments received by the Nelsons after Winter's death in 2014 and denies their claim to ownership of his music rights.

The dispute began in 2020 when the relatives of Winter’s late wife, Susan Winter, accused the Nelsons of improperly diverting more than $1 million from Winter's music business. The Nelsons denied these accusations and filed a countersuit, claiming they were unjustly removed as beneficiaries and asserting rights over Winter’s music.

Following a seven-day trial in January 2024, Judge Trial Referee Charles Lee ruled that while certain payments and withdrawals by the Nelsons were improper, they did not constitute fraud or breach of contract. Lee described the Nelsons' actions as "negligent or at least arguably legitimate" in a detailed 54-page decision.

One significant financial misstep cited by the judge was a $112,000 transfer from Johnny Winter’s business account into the Nelsons' personal account in 2019, conducted without naming Susan Winter as a signatory. Susan Winter, who passed away in October 2019, owned all of her husband's assets, valued at roughly $3 million at his death. The judge indicated that punitive damages might be considered against the Nelsons due to this transfer.

Paul Nelson, who managed Winter’s business from 2005 to 2019 and also performed as a guitarist in Winter’s band, died from a heart attack in March 2024. Marion Nelson, who managed bookkeeping responsibilities, did not immediately respond to requests for comment, and it remains unclear if an appeal will be pursued.

Susan Winter, prior to her death from lung cancer, removed Paul Nelson as successor trustee of her family trust, appointing her siblings, Bonnie and Christopher Warford, as replacements. The Warfords subsequently sued the Nelsons, alleging improper payments and financial mismanagement. Although the Nelsons counterclaimed that the Warfords exploited Susan Winter’s medicated state, Judge Lee found in favor of the Warfords.

The court awarded damages to the Warfords, specifically noting $68,000 in royalty payments from a 2016 auction, $69,000 in cash withdrawals, $18,000 in expense reimbursements, and $15,000 in additional royalties. The Warfords also received rights to $56,000 remaining in the Nelsons' account, which had been involved in the controversial $112,000 transfer.

However, Judge Lee upheld Paul Nelson’s receipt of $300,000 from auction proceeds from the sale of three guitars, affirming that Winter had promised the guitars to Nelson.

Johnny Winter, born in Beaumont, Texas, rose to fame in the 1960s, noted for his electric blues performances and distinctive appearance due to albinism. Inducted into the Blues Foundation Hall of Fame in 1988, Winter was posthumously awarded a Grammy in 2015 for Best Blues Album for "Step Back," produced by Nelson. Winter battled heroin addiction throughout his career but credited Nelson with helping him overcome substance dependency and revive his music in the late 1990s.