Lack of concern encapsulated by dispute (12)
I believe the answer is:
indifference
'lack of concern' is the definition.
(I've seen this before)
'encapsulated by dispute' is the wordplay.
'encapsulated by' becomes 'in' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'dispute' becomes 'difference' (synonyms).
'in'+'difference'='INDIFFERENCE'
Can you help me to learn more?
(Other definitions for indifference that I've seen before include "Lack of interest" , "Lack of concern" , "Lack of involvement" , "Unconcern" .)