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A case that is ?dismissed with prejudice? is completely and permanently over. A case will be dismissed with prejudice if there is reason for the case not to be brought back to court; for example, if the judge deems the lawsuit frivolous or the the matter under consideration is resolved outside of court.
You can appeal a dismissal with prejudice. A dismissal with prejudice means that the case has been dismissed permanently and cannot be brought back to the same court. It is, in effect, a final judgment. However, that does not prevent you from appealing to a higher court.
?With prejudice? means that you cannot re-file your case ever. ?Without prejudice? means that you can re-file your case at a later date (as long as you are still within the statute of limitations).
For example, if someone was subject to an illegal search or arrested without probable cause, that could be considered a violation of the defendant's constitutional rights. Another situation that can lead to dismissal with prejudice is if the person charged with the crime successfully completes a diversion program.
For example, an arrest without probable cause, violation of the right to a speedy trial, or an illegal search can lead to a case being dismissed with prejudice. Other errors in a case also may lead a court to dismiss a case with prejudice.