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MELLON SWEEP FEE CASE ORDERED DISMISSED

 PITTSBURGH, May 18 /PRNewswire/ -- A federal appellate court today ordered a district judge to dismiss an action challenging Mellon Bank's trust sweep fee practices.
 In its decision, The Third Circuit Court of Appeals indicated that the reasonableness of Mellon's conduct should be decided by a Pennsylvania state court, the Orphans' Court for Montgomery County, which has previously approved Mellon's actions.
 The lower court had ruled in August 1992 that Mellon should refund sweep fees charged to trust accounts since 1981. In overturning that decision, the appellate court noted that Mellon was entitled by statute to charge its customers a reasonable sweep fee and that Mellon's fees were comparable to or even less than those charged by other banks in area. The court stated that it was "evident to a legal certainty" that federal court jurisdiction was not proper in this case.
 Michael E. Bleier, general counsel of Mellon Bank, said, "We are obviously gratified that the court acted quickly and decisively to overturn the lower court's opinion. This decision, taken together with the Orphans' Court decision, completely vindicates Mellon's position."
 This litigation had attracted national attention in the trust industry. Several industry associations, including the American Bankers Association, the Pennsylvania Bankers Association, the Independent Bankers Association of America, and the Association of Bank Holding Companies, strongly supported Mellon's position by filing "friend of the court" briefs in the appeal.
 /delval/
 -0- 5/18/93
 /CONTACT: Charles M. Johnston, analysts, 412-234-5601, or Thomas W. Butch, media, 412-234-6436, both of Mellon Bank/
 (MEL)


CO: Mellon Bank ST: Pennsylvania IN: FIN SU:

CD -- PG017 -- 0031 05/18/93 18:22 EDT
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Publication:PR Newswire
Date:May 18, 1993
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