Hang on. Does the Court actually have the authority to take the water from her? She's acting in her capacity as ambassador from the forest, working with elves, to retrieve something of Coyote's that's inside a giant tree. There's an argument to be made that it's on Court property, but it itself is not Court property, they couldn't retrieve it themselves, and as far as I know the Court getting any such thing isn't part of any agreement made with Annie, the Forest's representative. OTOH, maybe they do have that right from an older agreement...

Regardless, the whole thing was pulled off more like a Bavarian Fire Drill than a bureaucratic process, complete with comments about Annie's recent performance to keep the target off balance.