What is without prejudice? What does without prejudice mean?You can use the statute of limitations as an affirmative defense in your case to get it dismissed without prejudice. 1. Making allegations or accusations. In your first without prejudice letter, be selective and keep some issues in reserve for the final negotiating stages. Only use the term "without prejudice" when commenting upon, communicating or responding to a settlement proposal or offer. I am writing to inform you that I disagree with all debts you are collecting on or are placed with your company, in my name. A without prejudice letter is a legal term that is usually used to settle legal disputes. JOHN KANE, Senior District Judge. This letter can be marked without prejudice.