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.
Misrepresentation, fraud, or undue influence This exception can apply in an employment context if either party has induced the other to enter into a contract (which again would include any compromise agreement) by an untrue statement of fact.
A case dismissed with prejudice is over and done with, once and for all, and can't be brought back to court. A case dismissed without prejudice means the opposite. It's not dismissed forever.
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.
The traditional meaning of 'without prejudice' it is to allow communications between parties without worrying that those communications, like letters or emails, will be used in court against the writer.
In your first without prejudice letter, be selective and keep some issues in reserve for the final negotiating stages. Try not to over-emphasise all the ways you think they've mistreated you. Instead stop and think if there is a way in which you can more subtly mention their behaviour.
The basic meaning of 'without prejudice' is that statements made in the settlement of an existing dispute cannot be relied upon as evidence against the interests of the relevant party if negotiations fail and the parties then have to formally engage in a dispute resolution procedure.
Confidential and without prejudice . – this usually means that ideas discussed cannot later be used against either party if there are future court proceedings so negotiations are more open.
Three elements are necessary for the privilege: a dispute, a genuine attempt to resolve the dispute, and the making of assertions in that attempt. If all three elements are proved, the privilege applies to both parties and consent is required from both parties for the privilege to be waived.