Grant a right of first refusal on lucrative work if the firm takes on other work at a fixed amount

Sometimes a general counsel may find that a law firm is willing to handle a set of work for a fixed fee, such as all ERISA questions, if the firm in turn enjoys a privileged position when juicy law suits come along, such as employment litigation. Indeed, this “right of first refusal” may be just the bone to leverage favorable terms for the commodity work (See my post of March 1, 2008: fixed or flat fees with 36 references.).

It does not mean that the firm will automatically get the case or matter – think major acquisition – but it has the pole position in any race to be retained for large-fee matters.