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ROPES & GRAY RESPONDS TO MONARCH LIFE SUIT

 BOSTON, May 6 /PRNewswire/ -- Monarch Life's essential claim -- that a conflict of interest exists between a corporation and its wholly-owned subsidiary -- is both unprecedented and flatly wrong.
 As, Martin Lipton, one of the deans of the American corporate bar, said when he heard about Monarch Life's claim:
 -- "As I understand Monarch Life's theory, they are claiming a conflict of interest between a parent corporation and its wholly-owned subsidiary. If that's their premise, it is contrary to the customary practice of corporate law. On that theory, virtually every corporate lawyer in America could be sued."
 Lloyd Cutler, a distinguished corporate lawyer and consultant to the American Law Institute's Corporate Governance Project, echoed Lipton's comments:
 -- "It is commonplace for lawyers who represent a parent company to act simultaneously for its wholly-owned subsidiary, including advice on transactions between the two. In such cases, the lawyers' duties are the same as when the client is a single entity."
 Other allegations in the complaint are equally baseless. As a result of Ropes & Gray's advice, Monarch Life avoided losses. And Monarch fully disclosed its financial affairs to insurance regulators.
 The advice and services that we provided were sound. Our representation conformed with the applicable law, the standards governing professional conduct, and widely accepted practices of the corporate bar.
 We will vigorously defend this lawsuit and will move immediately for dismissal. We are confident that the complaint will be shown to be meritless.
 -0- 5/6/93
 /CONTACT: John D. Donovan, Jr., of Ropes & Gray, 617-951-7566 (office), 508-358-1183 (home); Richard E. Nicolazzo of Nicolazzo & Associates, 617-227-4150 (office), 617-720-4782 (home), 508-468-7514, (weekends)/


CO: Ropes & Gray, Monarch Life ST: Massachusetts IN: INS SU:

DJ -- NE021 -- 5656 05/06/93 16:42 EDT
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Publication:PR Newswire
Date:May 6, 1993
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