If you are in a dispute with someone or trying to settle an issue before it becomes a full blown dispute, you may come across something being “Without Prejudice”. The two most common times you'll encounter this are in a letter or email from the other party or their lawyer, or in a meeting or phone call.
“Without Prejudice” means that you are sending a communication in an honest attempt to compromise a matter, in which you might make a concession (either expressly or implicitly) to the other side that cannot be later put into evidence in Court.
When a court dismisses an action, they can either do so “ with prejudice ” or “ without prejudice .” Dismissal with prejudice means that the plaintiff cannot refile the same claim again in that court.
Dismissal without prejudice means that the judge dismissed the plaintiff's or prosecutor's case without damaging their right to have their matter heard in court later. A prosecutor may ask to withdraw the case against a person to have more time to make a case stronger, find more evidence or question other witnesses.
The 'without prejudice' privilege means parties to a dispute can make concessions and promises without fear that their words will be used later in court.
The purpose and intended effect of the words “without prejudice” is to prohibit a party from using the doctrine of res judicata (from the Latin, “a thing decided”) in any later actions on the subject matter.
The WP rule is to encourage settlement discussions without parties weakening their position in the formal dispute. Basically, if this rule applies, people can speak and write openly without fear that what they are saying may be used against them in court or arbitration.
Whereas a case that is dismissed “with prejudice” is dismissed permanently, a case that is dismissed “without prejudice” is only dismissed temporarily. This temporary dismissal means that the plaintiff is allowed to re-file charges, alter the claim, or bring the case to another court.
If a decision or action is made without prejudice to a right or claim, it is made without having an effect on that right or claim: My client accepts the formal apology without prejudice to any further legal action she may decide to take.