A NY appellate court ruled Thursday that a defamation lawsuit brought against President Donald Trump by a former "Apprentice" contestant can move forward.
Trump's lawyers have tried unsuccessfully to block the suit, arguing that the president is immune from such lawsuits in state court.
He denied the allegations and called the women liars, which prompted Ms Zervos to take him to court.
The second allegedly occurred soon thereafter when Zervos went to meet Trump for dinner at the Beverly Hills Hotel, where she said he kissed her "open-mouthed", "grabbed her shoulder, again kissing her very aggressively, and placed his hand on her breast".
Judges in the appellate division of the first judicial department agreed with Zervos, saying the Supreme Court's decision "did not encroach upon the exercise of the executive powers of the President" and that the Supremacy Clause was "never meant to deprive a state court of its authority to decide cases and controversies under the state's constitution".
In addition, according to Bragg, other cases were stalled in anticipation of the Zervos decision, including one by the New York State Attorney General against the Donald J. Trump Foundation.
Zervos was among over a dozen women who emerged during Trump's 2016 campaign with allegations of sexual misconduct years earlier.
Trump's attorneys had argued that the suit could not move forward because it would violate the Supremacy Clause-which elevates the Constitution and federal laws over state laws-by interfering with Trump's ability to do his job.
The dissenting judges said the lawsuit would interfere with Mr Trump's job as President, and should wait until he left office.
That paved the way for Mr Clinton's impeachment the following year.
Trump has denied Zervos' claims and called her case politically motivated.
That lawsuit was dismissed on March 7. A finding in Mr. Trump's favor could have derailed at least two other cases in NY courts, including a wide-ranging probe into the Trump Organization by the state's attorney general.
Zervos appeared on "The Apprentice" in 2006, when Trump was the reality show's host.
"The current sitting President attempts to shield himself from consequences for his alleged unofficial misconduct by relying upon the constitutional protection of the Presidency", the judges said in an opinion written by Justice Dianne T. Renwick.
Her lawyer, Mariann Wang, said in an emailed statements she was pleased the judges had ruled that Trump was "not above the law".
Zervos is seeking a retraction, an apology, and compensatory and punitive damages.