The Local Government Association (LGA) claims ВЈ53m has been paid to victims of pothole accidents, plus ВЈ12m in court costs, against the ВЈ52.3m spent on repairs.
It claims the ВЈ53m could have fixed 946,429 of the 3.5m potholes around the country.
It wants a change in the law to address the вЂњcompensation cultureвЂќ driven by no-win no-fee lawyers, reported the BBC.
вЂњThese figures show the extent to which our efforts are being hampered by the compensation culture that exists nowadays,вЂќ said LGA spokesman David Sparks.
вЂњSince no-win, no-fee was introduced, almost all councils have seen an increase in compensation claims.вЂќ