The argument that a flag with gold fringe in a courtroom means it's an admiralty court, or a court martial (i.e., military court), has been shot down in flames every time some nut argued it.
In the case of McCann v. Greenway (952 F. Supp. 647, W.D. Mo., 1997), McCann managed to combine the two crank theories by arguing that the gold fringed American flag was an "admiralty flag of war." The judge's comment when he dismissed that delusional argument bears repeating:
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Jurisdiction is a matter of law, statute, and constitution, not a child's game wherein one's power is magnified or diminished by the display of some magic talisman.
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So if you think that whether a flag in a courtroom has gold fringe affects what type of court it is, you're giving into the same sort of childish, superstitious nonsense that makes primitive people believe in voodoo dolls.