"Without Prejudice" means you may be able to refile lawsuit later. Settlement demand letters are used in most personal injury cases to begin settlement negotiations.A without prejudice letter is a letter that is sent in an attempt to negotiate a settlement in a legal dispute. You can use the statute of limitations as an affirmative defense in your case to get it dismissed without prejudice. If there is an official form for a legal procedure, it is usually found on the court or court clerk websites. We link to many in this guide.