It is used when a case has been settled, but could come back up for future claims. It is often used when there are car wrecks and medical care.University of Michigan. A without prejudice conversation is a time for all parties to have their say and be allowed adequate time and space to do so. "Without prejudice" is a legal mechanism which limits who can see particular communications. Case law refers to perjury, blackmail and discrimination as possible examples. The decision as to how a case is dismissed relies on either a judge or the law itself. Negroes are simply ineligible for above-ceiling jobs because of race. In the employment law context, the without prejudice rule applies where the employer and employee have an existing dispute. Negroes are simply ineligible for above-ceiling jobs because of race.