John’s article articulates almost exactly my position on this, right down to the specifics, but does a better job of explaining it.
It is also why I went from Republican to libertarian several years ago.
So, as a functioning libertarian, how do you arbitrate grievences between individuals without resorting to the structures put in place by conservatives, liberals and progressives? Those structures (laws, courts, police) do not exist without compromising libertarian principles.