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The term ?without prejudice save as to costs? means that this protection applies until the court delivers a judgement, and after this process, the court may use their communications to decide how to award costs.
The Canadian settlement privilege began as the ?without prejudice? rule adopted from English common law. ing to the rule, communications made ?without prejudice? in the course of settlement negotiations were inadmissible in evidence.
A common variation is ?without prejudice save as to costs? ? also called a Calderbank Offer. When this is used, it means that the party intends to exclude financial disclosure of the communication or any admissions made pursuant to it.
Bottom line: only use the term ?without prejudice? when commenting upon, communicating or responding to a settlement proposal or offer. Otherwise, you may be leading yourself to believe that your communication is ?off the record? when it may very well be part of the eventual record.
While without prejudice communications are protected, the privilege only applies to pre-settlement negotiations and communication, this means that it does not apply to final settlement documents.