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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.
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.
?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).