In light of the post above by Sneezycheese, I feel I have to make a response. Clearly that post is defamatory, and needlessly offensive. I think that the normal course of action for a company in this position would have been to ask the moderator to remove the post and, quite possibly, to sue the poster.
However, Nominet does not intend to pursue that: if Sneezycheese wants to have that view, then so be it. We obviously disagree, and I think that it is a shame that he felt the need to immediately resort to abuse and allegations when there is a perfectly sensible answer to the question. This sort of behaviour does nothing to raise the level of the debate, and reflects badly on this forum, in my view. In particular it is a shame to resort to personal name-calling about individual staff members.
The logic behind the decision not to apply the without prejudice rule in the DRS was explained (and consulted upon) in the 2004 DRS consultation:
Dispute Resolution
and has been covered in other posts in this forum.
As you all know, in the DRS there is a mediation stage, which is confidential and provided by us. This is the opportunity, within the system, to settle a dispute on a without prejudice basis. In many ways it is better than the court, because we are providing the mediator for free.
As you will also know, one of the main forms of 'abuse' that the DRS is designed to combat is the classic cybersquatting tactic of demanding money for a domain name. If the Without Prejudice rule applied, then (even with a completely trademarked name) you could simply mark this demand for money as "without prejudice" and then demand that it not be used in the DRS - yet clearly, that offer to sell was part of the abuse, not part of the solution. This tactic was a genuine problem at the time, and was solved by the change, as far as I know.
I would also say that the Without Prejudice rules in the DRS do allow experts to exclude materials which they do not think it would be in the interests of justice to include. This was designed to allow experts to ignore genuine without prejudice correspondence if needed, as there will be cases where it is clearly fair to do so.
This change is therefore two years old, and has been operating without particular comment all this time. I am therefore surprised that it is suddenly being raised in this way, and being presented as such a major flaw in the system. If this really is a practical problem for you, then I would be interested to hear suggestions for a simple, understandable rule that could replace it, but meet the same objectives. If this is not a genuine issue for you, I would urge you to take a look at the tenor of your response, and consider whether it reflects worse on us or you.