Lassberg & Co. v. Atlantic Cotton Co., Inc.

Cureton, Judge:

In this action the parties stipulated before the trial court that the only issue before the court was that of “priority” between A. Lassberg & Co.’s (Lassberg) “perfected security interest” 1 and Pecot, Ltd.’s (Pecot) “possessory interest” in certain bales of cotton represented by negotiable warehouse receipts. Pecot appeals from an order holding that Lass-berg’s security interest prevailed over any claim Pecot had to the cotton. We reverse.

Harry D. Mahaffey, a cotton broker in Spartanburg, owns Caracot Enterprises, Inc. and Atlantic Cotton Company. For purposes of this appeal,…