I'm sure you don't need to be told, but for those who are reading and need to hear it: the most powerful and healthy thing a GM can do is say no. The GM gets to arbitrate the tone of the game and setting, and healthy boundaries are conducive to both fun and creativity.
Actually OP handled it pretty well, at least in the end . PC face consequences for their actions (a trial with the risk of being hung) and end up having to act to solve the problem. It's somehow created more game opportunities.
I'm sure you don't need to be told, but for those who are reading and need to hear it: the most powerful and healthy thing a GM can do is say no. The GM gets to arbitrate the tone of the game and setting, and healthy boundaries are conducive to both fun and creativity.
Actually OP handled it pretty well, at least in the end . PC face consequences for their actions (a trial with the risk of being hung) and end up having to act to solve the problem. It's somehow created more game opportunities.