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. This letter can be marked without prejudice. This guide examines the issues that parties to a dispute should consider when seeking to negotiate terms of settlement. Many civil cases settle before trial, and defendants commonly seek confiden- tiality agreements concerning the terms of settlement. "Generally, communications between parties which are made on a. A party is not required to label a correspondence "without prejudice" to receive settlement privilege protection. The without prejudice rule gives parties to a dispute protection while they are discussing settlement through negotiation. Genuine attempt at settlement: The communication must be part of an actual negotiation process aimed at resolving a dispute.