A NY appeals court rejected President TrumpDonald John TrumpGiuliani says Federal Bureau of Investigation may have placed spy in Trump campaign Giuliani: There is "nothing illegal about looking for dirt on political opponents" Giuliani: If Mueller subpoenas us, we will challenge it MORE's motion on Thursday to halt a former "Apprentice" contestant's defamation case against him.
Trump's lawyers had requested the freeze until an appeals court decided whether the president can be sued in a state court, The Associated Press reported.
Trump has denied the allegation.
New York State Supreme Court Justice Jennifer Schecter in March rejected Trump's request to throw out Zervos's lawsuit, clearing the way for evidence-gathering that could force the president to answer questions under oath.
Trump's attorneys at Kasowitz Benson Torres in turn sought a stay of the case, insisting that the Supremacy Clause of the U.S. Constitution and the president's Article II responsibilities protect him from prosecution.
The White House was not immediately available for comment.
Zervos, an "Apprentice" contestant in 2005, accused Trump of kissing her against her will at a 2007 meeting in NY and later groping her at a Beverly Hills hotel.
She first came forward in October 2016, a month before the presidential election, following the release of a 2005 "Access Hollywood" recording in which Trump spoke in vulgar terms about women.
"We look forward to proving Ms. Zervos's claim that defendant lied when he maliciously attacked her for reporting his sexually abusive behavior", Wang said in a statement. "Respectfully, the Appellate Division's order denying a stay of the case pending the resolution of this key issue is incorrect".
"It is also completely and unjustifiably contrary to the stays the courts uniformly granted when deciding whether a lawsuit against President Clinton could proceed in federal court", Kasowitz said in an emailed statement.
Zervos' complaint says she suffered at least $2,914 in financial losses and "pleads these special damages in the event that a court should determine that she is required to plead special damages as an element of her claim".