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?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).
Reasons for dismissal without prejudice The parties came to an agreement and the plaintiff wants to end the case. The person the plaintiff sued paid you the money he or she owed you. The plaintiff cannot locate the defendant to serve him or her, but wants to reserve the right to sue at a later date.
A court may allow a plaintiff to voluntarily withdraw from the suit through a Rule 41(a) dismissal without prejudice if the plaintiff would suffer hardship from continuing the suit. Also, under Rule 37(b)(2), a court may dismiss without prejudice to sanction a party acting in bad faith.
Dismissal Without Prejudice For example, if a person beats another person very severely, the prosecutor may file assault charges against the aggressor. If the victim later dies, the prosecutor may want to drop the assault charges in favor of a murder charge.
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.