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In the formal legal world, a court case that is dismissed with prejudice means that it is dismissed permanently. A case dismissed with prejudice is over and done with, once and for all, and can't be brought back to court. A case dismissed without prejudice means the opposite. It's not dismissed forever.
?With prejudice? means the decision is final. ?Without prejudice? means it's not final and subject to future inquiry. If the judge announces a case is dismissed with prejudice, that means it's permanently dismissed and can't be retried.
In a California civil or criminal case, either party can file a motion for dismissal that will terminate the case. Dismiss with prejudice is when the charges are dropped, and you are free. You cannot be tried for the same case in another court as that would constitute Double Jeopardy.
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.
?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).