Trump appealed that decision not long after, saying she was mistaken in not dismissing or staying the case, and his attorneys sought to defer proceedings while the appeal is pending.
Trump had sought to stay the case while he pursued his appeal but, without explanation, the judges said, "The motion is denied".
"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.
Zervos was one of almost a dozen women who came forward during the 2016 presidential race to accuse Trump of sexual misconduct.More news: Prince Charles to walk Meghan Markle down the aisle
This ruling comes follows the Trump Team's appeal of a March 20 ruling by the presiding judge in the case.
Zervos claims Trump defamed her by denying her allegations of unwanted kissing and groping when she met with him to discuss job opportunities. "There is no valid reason in this case-in which plaintiff is seeking merely $3,000 in damages and which plaintiff's counsel has repeatedly insisted was brought for political purposes-for the court not to grant the requested stay", he said.
Kasowitz said that the case raises what the U.S. Supreme Court has called an "important" and unresolved constitutional issue - whether the Constitution's Supremacy Clause bars a state court lawsuit against a president while in office.
A NY court says former "Apprentice" contestant Summer Zervos can proceed with her defamation lawsuit against President Donald Trump, at least for now.
Additionally, they said the suit was filed in state court, so Trump should not have to respond.More news: Career-low round sees Marc Leishman lead in Dallas
Zervos's lawyers also are seeking Trump campaign documents concerning not only Zervos but any woman who has accused Trump of inappropriate touching, as well as any campaign records referring to the release of a 2005 "Access Hollywood" tape in which Trump boasted about grabbing women. He claimed the accusations were "totally false" and said Zervos and his other accusers had fabricated their stories.
"It is settled that the president of the United States has no immunity and is "subject to the laws" for purely private acts", Schechter wrote.
The ruling is an encouraging sign to Mariann Wang, who replaced Gloria Allred as Zervos's representation after the famous feminist attorney withdrew from the case in March.
Summer Zervos leaves Manhattan Supreme Court at the conclusion of a December 5, 2017, hearing in NY.
Trump filed a motion to stay the lawsuit, arguing that he was constitutionally protected from being sued while he serves as president.More news: Two weeks after Hawaii volcano eruption, residents say it's getting worse