Settlement negotiations are generally subject to the 'without prejudice' rule. Osborne Clarke lawyer penalized £50,000 for sending a 'without prejudice' email regarding Nadhim Zahawi.The without prejudice rule exists to encourage parties to attempt to resolve disputes without resorting to litigation. Without prejudice privilege is a type of legal professional privilege. Both are common law rules based on case law and affect the admissibility of evidence. What is the point of the "without prejudice" rule? The without prejudice principle is a form of privilege reserved for a genuine attempt to settle an existing dispute. "Without prejudice" means that plaintiff's rights are not lost and the case can be re-filed. • Judicial District Court. Without prejudice, however, because certain allegations in the complaint refer to the BPD's.