What is the effect of using with prejudice on a letter?

First, I will comment on the use of “with prejudice” on the face of correspondence written by counsel. Those words usually mean that the writer of the letter intends to be bound by it, that is, that the author seeks to fix legal rights: Leonardis v. Leonardis (2003), 50 Alta. L.R. (4th) 56, 2003 ABQB 577. Leonardis discusses a letter marked “With Prejudice” which is one letter written in a series of settlement letters. In that case Slatter J. states that “placing ‘With Prejudice’ on a settlement offer is inappropriate and ineffective.”: at 60. In that case, counsel appeared to attempt to waive privilege for both parties after a series of communications in an attempt to settle. Slatter J. rightly disallowed this.