Settlement Discussions Without Prejudice
Description
How to fill out Memo Regarding Settlement Negotiations?
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FAQ
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.
?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 one, if you're the person cashing the check, you may want to write something like ?Received Under Protest, Without Prejudice? in the endorsement area. Depending on which state's law applies, writing something like this could preserve your right to recoup the remainder owed to you under the initial deal.
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.
Identify, gather and produce the most important information early. Settlement negotiations are most effective at the proverbial sweet spot, when each side has the information it believes it needs to make a judgment about settlement but before discovery expenses allow the sunk costs mentality to take hold.
