Partner Loan Dispute Hits San Antonio Ranch Venture
Business owners should review loan documentation and repayment terms to mitigate risks in private joint venture agreements.
Updated on Oct. 26, 2026 in Philanthropy
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Michael J. Lynd Jr. has filed a lawsuit in San Antonio District Court alleging Mark M. Johnson Jr. failed to repay over $7.3 million in loans linked to their joint ranch venture. The legal action highlights the risks of informal lending agreements between business partners.
Why it matters
The dispute underscores the financial exposure that occurs when capital contributions and operating expenses are financed through promissory notes rather than traditional equity structures. Business owners should recognize that without formal repayment enforcement, personal and business assets remain highly vulnerable to default.
The lawsuit involves $7.3 million in alleged unpaid principal and interest across 19 promissory notes issued between 2020 and 2022. The debt is tied to a 1,113-acre Frio County property purchased for $5.2 million in 2019.
The players
Michael J. Lynd Jr.
A San Antonio-based investor involved in real estate and joint venture operations.
Mark M. Johnson Jr.
A business partner and former King Antonio XCIII who co-owns the MMJ Ranch LLC property.
MMJ Ranch LLC
A jointly owned real estate vehicle holding a 1,113-acre property in Frio County.
The details
The litigation alleges breach of contract and fiduciary duty after initial promissory notes with a 4% interest rate defaulted and climbed to 9%. Lynd contends he provided consistent capital advances to cover Johnson's share of operating costs for their jointly owned MMJ Ranch LLC. The notes were due in full on November 1, 2023, leaving significant outstanding balances as of September 2026.
Timeline
2019: Parties formed MMJ Ranch LLC.
October 2020 - July 2022: Lynd issued 19 promissory notes.
November 1, 2023: Initial deadline for note repayment.
October 22, 2026: Lynd filed the lawsuit in District Court.
Market Landscape
This lawsuit marks the formal breakdown of a partnership initiated by the 2019 formation of MMJ Ranch LLC. It highlights how private ranch investments often lack the rigid governance found in institutional real estate, leaving participants exposed when partner liquidity dries up.
Operators should review existing promissory notes and joint venture agreements to ensure repayment terms are strictly defined and monitored. When funding a partner's capital contributions, document all advances to protect claims in potential litigation.
The takeaway
The breakdown of this partnership shows that even longstanding personal ties cannot substitute for rigorous debt documentation. Owners should proactively audit outstanding partner loans and confirm that interest accrual terms remain enforceable if repayment deadlines pass.
Further reading
Learn more about the risks associated with non-profit and private land partnerships in the Philanthropy section.
Source note: This article includes information reported by San Antonio Express-News.
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