1. Once you head a letter and mark it "Without prejudice", then it is a privileged communication which cannot be opened in any court proceeding or read at trial in the legal action which ensures in the case. The whole idea of "without prejudice" communications is that the provide a means whereby parties can attempt to reach a settlement of their dispute and have communications in this regard without those settlement attempts subsequently rendering them inhibited or hamstrung in the defence of their legal action. It is for this reason that "without prejudice" communications cannot be referred to in court by either of the parties to the legal action. Neither the party who wrote the without prejudice communication nor the other side may make reference to any without prejudice communication. Accordingly, in your situation, if you head the letter to the company which is taking you to court "without prejudice", its contents cannot then be subsequently referred to in open court by either you or this company. So you should not make reference in the without prejudice letter to any matters other than settlement issues as otherwise, these issues cannot be referred to in court. If necessary, write two letters. One dealing with potential settlement issues and a separate letter which deals with other matters relevant to the legal action.
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