Many lawyers embarking on their career path accept smaller cases as a means to establish a presence in the industry. The hope is that these smaller tasks might serve as a stepping stone towards larger legal assignments and more lucrative clientele in the future, as per observations made by a seasoned attorney and partner at The Rothman Law Firm, Jordan Rothman, in a recent article for Above The Law.
Rothman clarifies that providing legal assistance for minor matters does not necessarily guarantee more work down the line. Lawyers are often misguided to offer more favorable fee stipulations, erroneously associating it with potentially profitable referrals in the future.
Rothman recounts his early career experiences when he handled a minor case on a flat-fee basis for a sizeable company. Despite the fact that the task required a substantial amount of unexpected work, Rothman was able to provide an effective resolution. The fruition arose from the conviction that such a successful feat would render his firm a favorable consideration for subsequent, larger legal matters from the same client.
Coupled with additional years of practice, it became apparent that the client consistently referred minor issues, which the firm eventually ceased to manage as it evolved and handled increasingly prominent cases. Rothman’s firm, despite proven capability in serving large-scale clients such as publicly-traded corporations, was perceived primarily as fit for minor matters by the company’s legal counsel.
Another instance Rothman mentioned was when he accepted a small litigation matter from a potentially high-volume referral source. Despite performing solid legal work and attaining a favorable resolution for the client, no additional business came his way from that client. This led him to the conclusion that the promise of future work might just be a negotiation tactic to secure lower fee structures.
Ultimately, attorneys need to be aware and considerate of this practice. Rothman’s experiences encourage lawyers to be conscious and cautious not to allow the allure of future work opportunities to unduly influence their compensation negotiations, particularly when it comes to smaller assignments. The reality is, clients might have no intention of referring larger matters, thus lawyers need to evaluate each case on its own merit, independent from imagined future prospects.