The basic problem of small claims processing is that processing costs frequently exceed the amount in controversy and perceived gains. The complexity of the small claims problem derives from the attempt to reconcile what appear to be irreconcilable opposites: the citizen's right to have legitimate grievances heard by some third party and the speedy and efficient functioning of judicial and quasi-judicial bodies whose task would be made difficult or impossible to accomplish if every dispute could be brought before them. Conciliation and arbitration outside the formal legal system is drawing considerable attention as a solution to the problem; however, the primary reform thrust during the 80's will be toward the formal legal system. One strategy of reform focuses on changes in substantive law which extends consumer protection from dubious trade practices that coerce or deceive. Studies suggest, however, that this approach is severely limited. A second approach is surrogate advocacy, which involves public enforcement of private rights. This approach has inherent limitations rooted in the bureaucratic psychology and hierarchical structure that tend to characterize government enterprises. The most promising solution appears to be the establishment of a separate small claims division within the county court founded on a self-contained code of procedure. This would involve a synthesis of formal and informal justice which may be termed postformal justice. The new code of procedure currently being drafted by the National Consumer Council should contribute greatly to the ideal of postformal justice. Forty-two footnotes are provided.