What is the point of the "without prejudice" rule? This is called a dismissal without prejudice.There are three ways to deliver legal papers to start a case. Only use the term "without prejudice" when commenting upon, communicating or responding to a settlement proposal or offer. A communication (whether written or oral)1 must be made in the context of genuine settlement negotiations to be "without prejudice". Once a complaint has received a probable cause determination, the parties may only enter into a settlement agreement with the consent of the Division. 24. Since the Court granted preliminary approval, my firm has worked with the. Settlement Administrator, Epiq, to carry out the Court-ordered notice plan. D) and upon prompt dismissal with prejudice of its lawsuit following the Threshold. The letter included an offer for settlement of the application.