Section 807 of the Fair Debt Collection Practices Act, 15 U.S.C. Section 1692e, provides, in part, as follows: "A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
"(5) The threat to take any action that cannot legally be taken or that is not intended to be taken."
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This is effectively shorthand for saying: 'whilst I am trying to reach a settlement with you, I'm not admitting any part of the case or conceding or waiving any arguments or rights - so, my offers to achieve a commercial deal are without prejudice to my primary position that I'm right and you're wrong'.
However, what does the term ?Without Prejudice Save at to Costs? mean? Marking a communication with the words ?without prejudice save as to costs? means that this correspondence cannot be shown to the Court until after the main issue is resolved.
In general terms, the Without Prejudice Rule operates to exclude genuinely without prejudice communications from evidence in the current or subsequent proceedings between the parties to the dispute and between different parties to the dispute (e.g. in tripartite litigation).
Whereas a case that is dismissed ?with prejudice? is dismissed permanently, a case that is dismissed ?without prejudice? is only dismissed temporarily. This temporary dismissal means that the plaintiff is allowed to re-file charges, alter the claim, or bring the case to another court.
Ing to the rule if discussions and negotiations are undertaken under the rule of Without Prejudice Save as to Costs, they are admissible when costs are considered by the court. Prior to the costs assessment the communication will keep its Without Prejudice privilege.
