Zervos appeared on Trump's former show, "The Apprentice", in 2006. Trump's lawyers have since sought to halt the suit, or at least delay it until after he leaves office. It could open him up to discovery in the case, although he could also file further appeals to try to delay proceedings.
"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. The Appellate Division of the New York Supreme Court denied that request on Thursday, describing it as seeking "a stay of the action pending hearing and determination of" Trump's appeal of Schecter's order. Trump's lawyers had asked to put the case on ice until appeals judges decide whether to dismiss it or postpone it past his presidency.
The New York Daily Newsreported that the one-page order allowed Summer Zervos, a former contestant on "The Apprentice", to move forward with a lawsuit asserting that Trump damaged her reputation.
Judge Jennifer Schechter ruled in March that Trump is not immune from the state court lawsuit. Kasowitz wrote in an emailed statement that it was "completely and unjustifiably contrary to the stays the courts uniformly granted when deciding whether a lawsuit against President Clinton could proceed in federal court".
Stormy Daniels, a pornographic film actress whose real name is Stephanie Clifford, is seeking to end an agreement in which Trump's personal lawyer Michael Cohen paid her $130,000 not to discuss her alleged affair with Trump.
Trump now has until next week to file a response to Zervos' complaint and the Trump's legal team has until the end of the month to respond to a broad subpoena that seeks records related to Zervos and other women who have made misconduct allegations against Trump prior to the election.
The White House was not immediately available for comment.
Zervos has said those denials amounted to defamation and that diners avoided her restaurant after she was branded a liar.
Zervos filed her case initially with celebrity attorney Gloria Allred but tapped Mariann Meier Wang with the firm Cuti Hecker Wang after hurdling the immunity motion back in March. Allred said at the time that her withdrawal had "nothing to do with the merits of [Zervos'] case against President Trump". The Supremacy Clause of the U.S. Constitution prohibited state courts from exercising jurisdiction over a sitting president. The palace has not revealed any details about Thomas Markle's health issues, but the celebrity website TMZ says the 73-year-old retired Hollywood cinematographer is hospitalized in California after undergoing a procedure to clear blocked coronary arteries.