{"id":2124,"date":"2020-12-23T13:48:00","date_gmt":"2020-12-23T03:48:00","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=2124"},"modified":"2026-01-28T14:48:33","modified_gmt":"2026-01-28T01:48:33","slug":"what-does-without-prejudice-mean","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/disputes-and-litigation\/what-does-without-prejudice-mean\/","title":{"rendered":"What Does Without Prejudice Mean?"},"content":{"rendered":"\n<p>If you have ever been involved in a commercial dispute, you may have seen letters marked \u2018without prejudice\u2019. Put simply, this type of correspondence is \u2018off-the-record\u2019, so if there is a dispute, it cannot be used as evidence in court. This article will discuss:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the legal basis for without prejudice communications;<\/li>\n\n\n\n<li>when you can and cannot use them, including in an employment context; and<\/li>\n\n\n\n<li>how to carry out a without prejudice communication.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are \u2018Without Prejudice\u2019 Discussions?<\/h2>\n\n\n\n<p>\u2018Without prejudice\u2019 is terminology relevant to legal dispute resolution. Statements and admissions marked as \u2018without prejudice\u2019 are provided with <a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/legal-privilege\">legal privilege<\/a>. This means they are inadmissible as evidence in court proceedings. Inadmissible means a party cannot use the evidence to support or prove their claim.<\/p>\n\n\n\n<p>This prejudice rule is in place because it encourages parties to communicate freely to resolve their disputes. Without prejudice discussions enable you to propose creative solutions or make offers of compromise without the fear that the court will become aware of any of the concessions you have made or that your words will be used against you.<\/p>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <p>Put another way, if you mark communications as \u2018without prejudice\u2019, they are confidential, off-the-record communications.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What are Normal Discussions?<\/h2>\n\n\n\n<p>In contrast, normal (known as \u2018open\u2019) discussions and correspondence may prejudice your position. This is because normally, things that you say, write or do in the course of a legal dispute may later in court be evidence of your:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>actions;&nbsp;<\/li>\n\n\n\n<li>intentions;&nbsp;<\/li>\n\n\n\n<li>representations; and<\/li>\n\n\n\n<li>liability.<\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, 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The starting point is that any statement you make can become evidence against you in court. If your legal dispute goes to trial, you should expect that most of your communications relating to the dispute will be admitted to the court to help them make decisions regarding the issues and the outcome.&nbsp;<\/p>\n\n\n\n<p>However, there are exceptions to that general rule. The law recognises \u2018privilege\u2019 for communications that specifically seek to resolve a dispute. They do this in order to support the parties\u2019 attempts to resolve the matter directly and efficiently. The law states that communications cannot be used in court as evidence against the party that made them if they occur in a genuine attempt to settle a dispute during:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>negotiations;&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.nz\/employment\/three-things-you-should-know-about-mediation-in-new-zealand\/\">mediation sessions<\/a>; or&nbsp;<\/li>\n\n\n\n<li>plea discussions.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How Do You Ensure Communications are \u2018Without Prejudice\u2019?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Written Correspondence<\/h3>\n\n\n\n<p>You must label written correspondence clearly to ensure it is without prejudice. This can be as simple as writing \u2018WITHOUT PREJUDICE\u2019 at the top of a letter.<\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>It is good practice to keep correspondence without prejudice separate from open correspondence.<\/p>\n<\/div>\n\n\n\n<p>For an example of how this plays out in a legal dispute, lawyers will often send two letters around the same time:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>the first being an open letter, which sets out their legal position, arguments or demands; and&nbsp;<\/li>\n\n\n\n<li>the second is a \u2018without prejudice\u2019 letter, which sets out a commercially positioned settlement proposal.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>If the other recipient agrees to the terms of the settlement proposal, then the parties will have a basis for a formal resolution. If they reject it, then they will still have to consider the issues raised in the open letter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Verbal Discussions<\/h3>\n\n\n\n<p>In verbal discussions, the parties must clearly understand the discussion\u2019s non-prejudiced nature from the outset. Before proceeding, you should obtain the other party&#8217;s agreement to speak on a without prejudice basis and record this consent in writing.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For example, sometimes, lawyers will contact the opposing lawyer and ask to have a without prejudice discussion. If the other lawyer agrees, they will then have a frank, professional discussion about the technical legal aspects of the matter.<\/p>\n<\/div>\n\n\n\n<p>They may share what kind of compromises their respective clients may be open to, in a genuine attempt to find some middle ground or to progress the matter towards a resolution. The lawyers will not use this discussion later as a basis for any arguments in court.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is \u2018Without Prejudice Save as to Costs?\u2019<\/h2>\n\n\n\n<p>Without prejudice save as to costs is also commonly used to label correspondence in the context of a legal dispute. In short, \u2018save as to costs\u2019 means that you can admit correspondence to court as evidence, but only for questions relating to costs. This will usually be when the court has decided on the main issues and is determining the legal costs that the unsuccessful party must pay the winning party.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Settlement&nbsp;<\/h2>\n\n\n\n<p>If your offer is accepted or you reach a verbal agreement, you must record this in writing as soon as possible. A deed of settlement (or settlement agreement) will outline the agreed terms and, once signed by both parties, becomes legally binding and enforceable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is \u2018Without Prejudice\u2019 Correspondence Always Privileged?<\/h2>\n\n\n\n<p>Simply labelling a letter or email \u2018without prejudice\u2019 may not be sufficient to privilege your communications. Privilege only applies to your communications if you meet the criteria of the law, namely, it was:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>made in connection with an <a href=\"https:\/\/legalvision.co.nz\/employment\/settlement-agreements-new-zealand\/\">attempt to settle<\/a> or mediate the dispute; and<\/li>\n\n\n\n<li>intended to be confidential.<\/li>\n<\/ul>\n\n\n\n<p>Therefore, keep in mind that the simple act of labelling your correspondence as \u2018without prejudice\u2019 does not automatically deem all of its content privileged.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Your communication may include parts that are not about settlement. Those parts can still be shown to the court, even if the settlement discussions are removed, which can affect your case strategy.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Exceptions to the \u2018Without Prejudice\u2019 Rule<\/h2>\n\n\n\n<p>While \u2018without prejudice\u2019 is a privilege, it is not absolute. A few exceptions enable revealing information despite communications being on a \u2018without prejudice\u2019 basis.&nbsp;<\/p>\n\n\n\n<p>Should your conversation contain information for a dishonest purpose or enable a criminal offence, the court may remove the privilege. This exception includes:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>any communication made or received; or&nbsp;<\/li>\n\n\n\n<li>information compiled or prepared dishonestly or criminally.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Essentially, you cannot hide criminal activity behind the \u2018without prejudice\u2019 wall.<\/p>\n<\/div>\n\n\n\n<p>Before removing the privilege, the courts must be satisfied that the information meets the threshold. The thresholds are often high, narrow, and challenging to apply. If you are concerned about information communicated on a \u2018without prejudice\u2019 basis, you should seek experienced legal advice.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/05\/22210201\/guide-to-resolve-business-disputes-560x792-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Guide to Resolving NZ Business Disputes<\/div>\n            <div class=\"body-text\">\n                <p>Commercial disputes are costly, stressful and can damage your business reputation. LegalVision\u2019s free Guide to Resolving NZ Business Disputes can help.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/guide-resolving-nz-business-disputes.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Can I Have a \u2018Without Prejudice\u2019 Conversation With an Employee at Any Time?<\/h2>\n\n\n\n<p>No. The without prejudice rule only applies when there is a genuine dispute on foot and not just a routine employment matter. For example, unless there is a dispute on foot, you cannot use without prejudice protections during:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>routine performance reviews;<\/li>\n\n\n\n<li>performance improvement plan meetings;<\/li>\n\n\n\n<li>when carrying out the required redundancy process;<\/li>\n\n\n\n<li>disciplinary meetings; or<\/li>\n\n\n\n<li>general workplace discussions.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>You may consider having a without prejudice discussion if an employee has raised a personal grievance claim or indicated they may take legal action.<\/p>\n<\/div>\n\n\n\n<p>A common mistake of employers is believing that marking correspondence &#8216;without prejudice&#8217; will prevent employees from using your statements against you in the Employment Relations Authority or Employment Court.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <p>Remember, if there is no genuine dispute on foot, the label is essentially meaningless, and your admissions or statements may still be admissible as evidence.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Settlement discussions are an important part of any legal dispute and something that the law encourages. If you are making efforts to resolve a legal dispute, be sure to mark any correspondence that you would not like to resurface in court as \u2018without prejudice\u2019. You should also be aware of any exceptions to the \u2018without prejudice\u2019 rule and how they may apply to your dispute.&nbsp;<\/p>\n\n\n\n<p>LegalVision provides ongoing legal support for New Zealand businesses through our fixed-fee legal membership. Our experienced lawyers help businesses manage contracts, employment law, disputes, intellectual property and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or <a href=\"https:\/\/legalvision.co.nz\/membership\/\">visit our membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1768873411255\"><strong class=\"schema-faq-question\">What does \u2018without prejudice\u2019 mean?<\/strong> <p class=\"schema-faq-answer\">This phrase may be used in statements or admissions to provide legal privilege. Legal privilege means that the communications will be confidential and cannot be evidence in court.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1768873420299\"><strong class=\"schema-faq-question\">Are \u2018without prejudice\u2019 discussions confidential?\u00a0<\/strong> <p class=\"schema-faq-answer\">Generally, these discussions are confidential and \u2018off-the-record\u2019. This means they cannot be submitted to the court as evidence in circumstances of a dispute.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1768873430665\"><strong class=\"schema-faq-question\">What does \u2018without prejudice save as to costs\u2019 mean?<\/strong> <p class=\"schema-faq-answer\">This means the communication cannot be submitted as evidence, except for the purpose of answering questions relating to costs. All other communication will not be permitted.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you have ever been involved in a commercial dispute, you may have seen letters marked \u2018without prejudice\u2019. Put simply, this type of correspondence is \u2018off-the-record\u2019, so if there is a dispute, it cannot be used as evidence in court. This article will discuss: What are \u2018Without Prejudice\u2019 Discussions? \u2018Without prejudice\u2019 is terminology relevant to<a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/what-does-without-prejudice-mean\/\">Continue reading <span class=\"sr-only\">&#8220;What Does Without Prejudice Mean?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13518,"featured_media":813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"223041,216874,1435,2256,1895,948","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[9],"tags":[54,93,203,382,383],"class_list":["post-2124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disputes-and-litigation","tag-medium-business","tag-enterprise","tag-legal-privilege","tag-commercial-dispute","tag-correspondence"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Does Without Prejudice Mean? | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"This article explains what \u201cwithout prejudice\u201d communications are and how to use them properly. Find out more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/what-does-without-prejudice-mean\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Does Without Prejudice Mean? | LegalVision New Zealand\" \/>\n<meta property=\"og:description\" content=\"This article explains what \u201cwithout prejudice\u201d communications are and how to use them properly. 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