Are You Using "Without Prejudice" Correctly?
Ever wonder if you're misusing "without prejudice" in your communications? Many clients do! Often, it's used in the wrong context and could even weaken your position.
Here’s the rule: Only use "without prejudice" when making a settlement offer or compromise. Simply laying out your case doesn’t require it.
Want to ensure you’re using it correctly? Watch our latest video to find out when you should and shouldn’t include "without prejudice" and why it matters for your claims.
If you’re unsure or need help with your letters, reach out to me or the Millens team we’re here to guide you!
VIDEO TRANSCRIPT
Ross Millen:
I wanted to talk to you today about the two most misunderstood, misused words by clients, and they are "without prejudice." Now, sometimes clients will prepare a letter or an email they want to send to the other side, and they ask me to check it. Often, it comes to me right at the top, "Without prejudice." But that email or the letter might simply say, "Hey, you've breached this agreement. We've suffered some damages, and this is our claim." I think to myself, "Well, what is prejudicial about that? What are you saying against your own best interests in that sort of letter?" Nothing, so we strike "without prejudice" out. So when should you use it? When don't you need to use it?
Well, you don't need to use it if you're simply putting your case to the other side. "You've breached the agreement. This happened. You didn't pay on this date. Here's our damages. You need to compensate us." Fine. You don't need to put that "without prejudice." But where you make some sort of admission or particularly, any offer to settle or compromise your claims, then that's when you need to use it. So you might say all that and then say, "Look, you owe us $100,000, but without prejudice, we're prepared to settle if you pay us 60 or 65, whatever the number."
So remember, you only need to use "without prejudice" in the right situation when you are making an offer, or a compromise, or a settlement. There's a few other tricks to use with "without prejudice." It can affect the costs if you're going to have litigation, and also, you don't want to muddle up a communication where you have some open information that you want to refer to later, but you want to make an offer. In that case, maybe split it, but these can be complicated matters. So if you've got any queries about how to send out without prejudice letters or letters that are open, contact me or anyone else at the Millens team. We're here to help. Thanks.
