On the justice-system of the hobbits: We see at least one example of banishment. Granted it is not in the shire but in the vale of Anduin and it is rural comunity of Stores. Nevertheless Smeagol is clearly exiled by his clan.
This punishment he did not get for the killing of Deagol, because he is never blamed for that, but for his unsocial behavior (thus a misbehavior some what similar to that of Ted Sandymann).
Respectfuly
Findegil
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