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The strict legal rights of the parties to a lawsuit. The word merits refers to the substance of a legal dispute and not the technicalities that can affect a lawsuit. A judgment on the merits is the final resolution of a particular dispute. the actual and intrinsic rights and wrongs of an issue as distinct from extraneous matters and technicalities.
Dignity is honorableness, a quality of the person being elevated. Respect is a viewpoint, a quality of the person doing the elevating. In your example context, there is considerable overlap of connotation, and one could be used in place of the other. In other contexts, it would be hard to do so.