When my kids were little and fought over match box cars, and I was driving, I would have them hand it to me. I would throw it out the window! Now nobody could fight over it. I only had to do that maybe 2 times, but they needed to learn either get along or it is gone. I have 3 boys.
When they got older, they had to respect each others things. If they broke or took something, they had to replace or give it back.
DS #1 failed 2 classes in his 7th grade year by 2 points. WHY? He wouldn't do his homework! He got a job doing hay work and had to help pay for his summer courses. We didn't fail, he did, and he learned real quick that it all costs something.
We weren't being too hard, we were teaching them that either the play by the rules or they have to pay. Middle son got caught with cigs on school property. He had to go to court and had to pay $162 fine. He paid it, not us. He didn't do that again!
None of our boys have ever been in real trouble, they work and understand that in life you have to take responsibility for you actions.
You did the right thing as far as I am concerned.