Too many commercial cases are going to trial, said a survey of executives at FTSE 500 companies.
According to a report, the survey found that more than one in five cases were not settled before they reached the courts.
David Gray, head of litigation at DLA, said: "Too many cases are going to trial and too many cases are being started in the first place."
Executives and in-house counsel at the companies surveyed thought lawyers were "unwilling to stick their necks out" on the likely outcome of a case. The report said 36% of respondents thought their lawyers were unaware of commercial realities.
The survey, compiled by corporate law firm DLA, questioned 100 board-level executives and general counsel at FTSE 500 groups, selected at random. It found that businesses were over-exposed to growing numbers of disputes with other companies, such as suppliers, competitors and customers.
According to the report, only 4% of those surveyed had not faced a dispute in the past two years. Of those who had, 92% had used litigation, although 40% said it had been "less than successful".
Most companies predicted a rise in alternative methods of dispute resolution, said the report.