Trump's lawyers have said that Clinton v. Jones only applies to lawsuits in federal courts, not state courts.
Summer Zervos was flanked by attorneys Gloria Allred and Mariann Wang outside court Tuesday.
Celebrity attorney Gloria Allred, who's also representing Zervos, wouldn't say after the hearing whether she'd try to depose the president if the case went forward.
Summer Zervos was a contestant on the show in 2006 and sued the Republican after he dismissed as "fabricated and made-up charges" her claims that he made unwanted sexual contact with her at a Beverly Hills, California, hotel in 2007.
Trump is arguing that the Supremacy Clause of the U.S. Constitution immunizes the President from being sued in state court while in office.
Trump has said the comments amounted to "locker room banter", and his campaign issued a statement in which he apologized if anyone was offended.
A former "The Apprentice" contestant who accused President Donald Trump of sexually harassing her is expected in court on Tuesday as part of a defamation lawsuit she filed.
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"The motion today has nothing to do with putting anyone above the law", he told the judge.
"The president is the person who runs the executive branch", Kasowitz said.
But in a surprising allowance, Kasowitz acknowledged that Zervos case could have been removed to federal court with proceedings there but for the mere $3,000 being alleged by Zervos in damages. The ruling came after Paula Jones filed a sexual harassment lawsuit against President Bill Clinton, husband of Trump's main opponent in the 2016 presidential election, Democrat Hillary Clinton. He added that it didn't matter that the controversy at issue merely impacts Trump's unofficial duties in office.
A NY judge will hear arguments Tuesday in a defamation lawsuit against President Trump. If it does go forward, the case will likely be drawn out and ugly.
At one point, Judge Schechter asked what would happen if the president simply refused to follow one of her orders.
Wang admitted it was an excellent question and didn't exactly answer it directly.
However, legal experts say Trump's attorneys may have unwittingly played into the hands of the defense. "I also called upon him to state that what I said about his behavior toward me was true", Zervos said during a press conference in January, while discussing the defamation lawsuit.
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Zervos' lawyers subpoenaed Trump's campaign, asking to preserve any records concerning Zervos or other women who accused Trump of sexual misconduct.
She was one of several women who made accusations against Trump after the emergence previous year of a conversation caught on an open microphone in 2005 in which he spoke in vulgar terms about trying to have sex with women.
Near the end of the hearing, Kasowitz came back to this subject.
Trump thunderously denied her accusations, along with other women he called politically motivated liars.
Kasowitz then brought up a controversial issue in defamation law - whether denials of allegations can rise to defamation.
A judge will decide later whether to delay or toss the case. But the mechanism he suggested for doing so is noteworthy.
Can Trump be held liable for a retweet, the judge asked.
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Trump's lawyers did not dispute this.