Only use the term "without prejudice" when commenting upon, communicating or responding to a settlement proposal or offer. Without prejudice and with the court retaining jurisdiction (Code Civ.This letter can be marked without prejudice. "Without prejudice" is a legal term. It is used when a case has been settled, but could come back up for future claims. Without prejudice means you can file again about the same issue you put in the Complaint you filed if you need to. Generally a dismissal without prejudice means the lawsuit can be refiled. If your employer sends you a letter on a "without prejudice" basis, this means that the letter cannot usually be exhibited in a Tribunal or Court. "Dismissed without prejudice" is a legal term that means a case is dismissed but can still be refiled at a later point.