Schwarzenegger became governor in October 2003

Anna Richardson is suing the now California governor and two of his aides claiming they tried to ruin her reputation by dismissing her claims.

The actor's spokesman Sean Walsh argued for its dismissal, saying she had no chance of winning in a British court.

But the judge in the case said there was no way of knowing the outcome.

As Mr Schwarzenegger was campaigning to become governor in October 2003, Ms Richardson alleged he had touched her breast while she interviewed him during a movie promotion.

Tarnished reputation

She alleged that following her revelation, his spokespeople - Mr Walsh and Sheryl Main - libelled her in a Los Angeles Times article that also appeared on the internet.

Her libel action contended that Mr Schwarzenegger's staff had said she encouraged his behaviour. She said that tarnished her reputation as a professional interviewer.

Mr Walsh has previously made unsuccessful attempts to get the case thrown out, arguing that British courts had no jurisdiction.

His latest argument centred on the likelihood of the action failing.

But Lord Justice Swinton Thomas, sitting in the Court of Appeal, said there were no grounds to halt the case because it was not possible to predict whether it would fail.