An example of a without prejudice save as to costs settlement offer letter from a claimant (with drafting notes), also known as a claimant's Calderbank offer. Only use the term "without prejudice" when commenting upon, communicating or responding to a settlement proposal or offer.This is called a dismissal without prejudice. Without prejudice in case the settlement agree- ment was not consummated. Ten tips on how to write without prejudice letters to help you get a quick, painless settlement agreement and exit package deal. A without prejudice letter is a letter that is sent in an attempt to negotiate a settlement in a legal dispute. A communication (whether written or oral)1 must be made in the context of genuine settlement negotiations to be "without prejudice". It may be filed only in a Pennsylvania magisterial district court and not in the Philadelphia Municipal Court.