I think the dress is super cute, but not at all appropriate for court. I fully admit that I may just be very prudish about this, but when I wear a skirt to court, I'm not even comfortable foregoing nylons (something I never wear in my normal life). It's hard for me to think of somewhere I would dress MORE formally than at court. So given that standard, I think this dress isn't okay.
However, I spend a decent amount of time in court and am always SHOCKED at what people think is appropriate to wear, so I'm not at all surprised the judge didn't say anything about this outfit.