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Dismissal with prejudice is a final judgment and the case becomes res judicata on the claims that were or could have been brought in it; dismissal without prejudice is not.
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.
When a lawsuit is dismissed with prejudice, the court is saying that it has made a final determination on the merits of the case, and that the plaintiff is therefore forbidden from filing another lawsuit based on the same grounds.
A stipulated dismissal is always a voluntary agreement between the parties. After the court makes a determination of how much the defendant should pay, the parties can enter into the agreement and have it entered as an order by the judge.
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.