A judge in Connecticut has concluded a contentious dispute by ordering Johnny Winter’s manager to pay $226,000 in damages for improper payments received following Winter’s death in 2014, concerning the late blues legend’s real estate, while dismissing claims about his musical rights.
Winter’s widow, Susan, filed a lawsuit against his manager, Paul Nelson, and his wife Marion in 2020, alleging that the Nelsons had exploited Winter’s music business for over $1 million. Nelson denied the allegations. They accused Susan and her family of wrongly alleging that Nelson was removed as a beneficiary from Winter’s estate and of claiming entitlement to his musical rights.
After a trial that spanned seven days in January 2024, Judge Charles Lee ruled on Friday that the Nelsons had engaged in improper payments and illegal withdrawals from Winter’s accounts, asserting that they committed fraud, mismanagement, and breached their contractual obligations.
“The court finds that the actions justifying the damages awarded are at least reckless or certainly unlawful,” Judge Lee stated in his 54-page ruling, which also dismissed the Nelsons’ countersuit.
Judge Lee noted that the most egregious misconduct by the Nelsons was a $112,000 withdrawal from Winter’s business account in 2019, which they deposited into one of their accounts without designating Susan Winter as a signer. All of Johnny Winter’s assets were owned by Susan, whose estate was valued at approximately $3 million at the time of his passing. The judge indicated that punitive damages might be imposed on Nelson for this transfer.
Paul Nelson, who managed Johnny Winter’s affairs from 2005 until 2019 and played guitar in his band, passed away from a heart attack during a music tour in March 2024. Marion Nelson, who handled bookkeeping for Winter’s business, did not respond to an email on Monday. The attorneys for the Nelsons also did not return calls or emails promptly, and it remains unclear whether they plan to appeal.
Susan Winter succumbed to lung cancer in October 2019. Shortly before her death, she removed Paul Nelson as the successor to her family trust, appointing her siblings, Bonnie and Christopher Warford of Charlotte, North Carolina, to take over the role and subsequently filed a lawsuit against Nelson.
Warford’s legal representatives did not reply to phone or email inquiries on Monday. The phone number for Warford listed in public records was also out of service.
The Nelsons alleged that Warford manipulated Susan Winter into signing legal documents while she was under medication towards the end of her life, and claimed that Warford exacerbated tensions with her through unfounded embezzlement accusations. Warford denied these allegations.
The judge ruled in favor of Warford, awarding her damages for improper payments made to the Nelsons, which included $68,000 in royalty payments from a 2016 property auction, $69,000 in cash withdrawals, $18,000 in expense reimbursements, and an additional $15,000 in other royalty payments.
Warford was also awarded $56,000, which remained in one of the Nelsons’ accounts, the same account involved in the questioned $112,000 transfer. In 2020, Nelson transferred around $151,000 from his account to Warford’s attorney.
Lee also dismissed Warford’s claim regarding Paul Nelson’s receipt of $300,000 from the auction proceeds of three of Johnny Winter’s guitars.
John Dawson Winter III, known as Johnny Winter, grew up in Beaumont, Texas, and made his mark on the world blues scene in the 1960s, captivating audiences with his fast guitar licks and his signature long white hair peeking out from beneath his cowboy hat. He and his brother Edgar were both born with albinism and gained fame as musicians. Johnny Winter, who performed at Woodstock in 1969, was inducted into the Blues Foundation Hall of Fame in 1988.
In 2015, Rolling Stone Magazine named him the 63rd greatest guitarist of all time. Winter released more than twenty albums, winning his first Grammy Award in 2015 for the Best Blues album “Step Back,” which Nelson produced.
After living in Easton, Connecticut, for 20 years, Johnny Winter died in the same town but struggled with heroin addiction, which began in 1999. He revitalized his career by overcoming his opioid dependency, as highlighted in the 2014 documentary “Johnny Winter: Down & Dirty.”
Source: apnews.com