You can handle various types of exceptions, that exception can be handle with a ModelNotFoundException in this case
try{
$user = User::findOrFail($id);
}catch(ModelNotFoundException $e){
return response()->json(['error' => 'User not found'], 400);
}
And there's another way to catch various types of exceptions in the Handler.php located on app/Exceptions/Handler.php there you can catch the exceptions and return whatever you want inside the render
function.
For example insede that function you can add this before the return parent::render($request, $e):
if($e instanceof ModelNotFoundException)
{
return new Response(['message' => 'We haven\'t find any data'], 204);
}