Look at it this way, the DP monster governs D' mother's lair. In other words,
1. DP branches into DP [monster] and D' ['s mother's lair]
2. D' branches into D ['s] and DP [mother's lair]
3. DP branches into DP [mother] and D' ['s lair]
4. D' branches into D ['s] and NP [lair]



