The situation is a two-way stop on opposite sides of a normal road.
The driver on the south side arrives with the intent to turn left, but must wait for traffic to pass. While this first driver is waiting, another driver arrives at the north end of the intersection with the intent to go straight through. At this point, both drivers are waiting for traffic to pass. Once traffic passes, which driver has the right-of-way?
This lovely MSPaint diagram should help clarify the scenario.