Define: Without Prejudice

“Without prejudice” is a legal term used to indicate that statements, communications, or offers made during negotiations or settlement discussions are made without conceding any legal rights or admitting liability. When communications are labeled “without prejudice,” it means that they cannot be used as evidence against the party making them in subsequent legal proceedings. This allows parties to engage in open and frank discussions to explore potential resolutions to disputes without fear that their statements will be used against them in court. The without prejudice rule encourages parties to negotiate in good faith and facilitates the settlement of disputes outside of court. However, for the protection afforded by the without prejudice rule to apply, there must be a genuine attempt to settle the dispute, and the communication must be clearly marked as “without prejudice” or meet certain other requirements depending on the jurisdiction.

Legal phrase: Without abandonment of a claim, privilege, or right, and without implying an admission of liability.

• When used in a document or letter, without prejudice means that what follows:

1. cannot be used as evidence in a court case,
2. cannot be taken as the signatory’s last word on the subject matter, and
3. cannot be used as a precedent.

Contents of such documents normally cannot be disclosed to the courts but, when a party proposes to settle a dispute out-of-court, it is the genuineness of the effort that determines whether the proposal can disclosed or not, and not whether the words without prejudice were used.

• When a court case is dismissed, or a court order is issued without prejudice, it means that a new case may be brought or a new order issued on the same basis as the dismissed case or the original order.

If a judge dismisses a case “without prejudice” this is stating that the rights of the plaintiff have not been “truncated, waived or terminated” and the plaintiff may file the lawsuit a second time. There are a variety of reasons a case may be dismissed without prejudice including if the plaintiff decides they do not want to pursue the case, the judge believes the plaintiff cannot prove their case, or the plaintiff and the defendant have reached a settlement agreement and a lawsuit is no longer necessary. Unfortunately, for the first two reasons, the plaintiff could file the claim again.

A judge can also decide to terminate a case “with prejudice” when the plaintiff filed a nuisance suit, acted in bad faith or failed to follow the rules of court. In this case, the plaintiff is barred from filing another claim and the case is considered “settled” by the court.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.