It is embarrassing (v5) that those who have the wisdom of God need the services of worldly courts – “the unrighteous” (v1) to settle problems. That it has gotten to lawsuits is “already a defeat” for all parties. (v6) The people of God should have “one among you wise enough to settle a dispute” (v5).
The goal for the believer is reconciliation not just being proven right. This responsibility is greater than asserting one’s rights. (v7) If we went by what was right, we would have gotten judgment from God rather than being “washed” and “sanctified.” When we live by asserting “our rights” as the standard, we live below the glory of God’s Kingdom.