The passage you are thinking of is 1 Corintians 6:1-7,

"Does any one of you, when he has a case against his neighbor, dare to go to law before the unrighteous and not before the saints? 2 Or do you not know that the saints will judge  the world? If the world is judged by you, are you not competent to constitute the smallest law courts? 3 Do you not know that we will judge angels? How much more matters of this life? 4 So if you have law courts dealing with matters of this life, do you appoint them as judges who are of no account in the church? 5 I say this to your shame. Is it so, that there is not among you one wise man who will be able to decide between his brethren, 6 but brother goes to law with brother, and that before unbelievers? 7 Actually, then, it is already a defeat for you, that you have lawsuits with one another. Why not rather be wronged? Why not rather be defrauded?"

The point here is that it's better for believers to have a matter settled by the church than to go to court with each other. This lady is partially right in that it says it's better to be wronged than to take another believer to court, but this does not say anything about non-believers.