Atlas Claims InsightsPublished 7 October 2026 · Reviewed 14 October 2026 · 4 min readKey takeaways
- Genuine settlement communications are generally inadmissible as evidence of liability in England and Wales.
- The label alone is not enough: there must be a genuine attempt to settle an existing dispute.
- “Without prejudice save as to costs” offers can be shown to the court when costs are decided.
- Keep open and without prejudice correspondence separate.
Businesses often see "without prejudice" at the top of a letter without knowing exactly what it does. Used properly, it is one of the most useful tools in settling a commercial dispute.
What the rule does
In England and Wales, communications made in a genuine attempt to settle an existing dispute are generally inadmissible as evidence of liability. This allows the parties to make offers and concessions without fear that they will be used against them in court if talks fail.
What it does not do
- A label alone is not enough. The communication must be part of a genuine attempt to settle a dispute.
- It does not protect statements that are not about settlement, such as an open admission of a debt.
- Certain exceptions apply, for example where the communication is used to show that a settlement was actually agreed.
"Without prejudice save as to costs"
An offer made on this basis is protected during the case, but can be shown to the court when it decides who pays the costs. It is a common way to put pressure on a party who unreasonably refuses a sensible offer.
Practical tips
- Keep open correspondence (your formal position) separate from without prejudice correspondence (your offers).
- Record any agreement clearly in writing, and state when it becomes binding.
- Be careful in calls and meetings. Agree at the outset that the discussion is without prejudice.
Quick answers
What does “without prejudice” mean?
It means genuine settlement communications generally cannot be used in court as evidence of liability.
Does writing “without prejudice” always protect a letter?
No. The communication must be part of a genuine attempt to settle an existing dispute.
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This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.
