You may have come across the term “Without Prejudice” in emails, letters, or during business and legal discussions. It is a legal phrase used to indicate that the contents of a communication—whether a letter, email, or conversation—cannot be used against the person who said or wrote it if the discussions or negotiations later break down.
It is essentially a way to ensure that anything discussed in the context of settlement negotiations cannot later be used to disadvantage anyone, especially if the matter ends up in court or a formal dispute.
Why Use “Without Prejudice”?
The main reason to use “Without Prejudice” is to encourage open and honest communication between parties. It creates a space where individuals can explore settlement options or make compromises without fear that their words will be used against them in future litigation.
In essence, it signals:
“I am trying to reach a settlement with you, but I am not admitting fault or conceding liability.”
When Is a Communication Considered “Without Prejudice”?
A communication is only protected as “Without Prejudice” if it forms part of a genuine attempt to resolve a dispute, not just because it is labelled as such.
Conversely, even if the words “Without Prejudice” aren’t used, the communication may still be protected if it genuinely forms part of a settlement effort. The key is the intent behind the message, not just its label.
What Does “Without Prejudice Save as to Costs” Mean?
This phrase is often used in negotiations where parties want to settle, but also protect their position on legal costs.
It means that the contents of the offer remain protected, but the fact that an offer was made can be shown to the court when it comes to deciding who pays legal costs. For example, if a party refuses a reasonable offer and loses in court, they may be penalised in costs for not settling earlier.
Want to Know More or Need Help?
If you are looking to resolve a dispute or negotiate a settlement, understanding how to use “Without Prejudice” properly is key.
Our Dispute Resolution team has extensive experience in protecting clients’ interests during negotiations and disputes. Whether you need strategic advice or full representation, we are here to help.
