A system and method for organizing and sorting targets received in a referral response and for realizing a target fail-back and a target priority policy in a distributed file system is provided. In one embodiment, a sorting method includes receiving a referral response in the form of a list of targets that are sorted into bounded sets. Having a sorted referral response in bounded sets provides a basis for implementing a target fail-back and a target priority policy. The computer system may select a target from a sorted list of targets sorted according to site-cost and/or target priority. Then, the computer system may determine if the set target is associated with a more preferred target when compared to all available targets in the sorted list and if not, switch back to a more preferred target.