Potential libel trial for Schwarzenegger

Arnold Schwarzenegger has edged closer to facing a British libel trial after he failed to block a legal action brought by a reporter who alleged the actor-turned-politician sexually assaulted her.

British television host Anna Richardson alleges she was libelled by the California governor in a 2003 article over the assault claim. She says the Los Angeles Times article meant she "deliberately and dishonestly fabricated" allegations that the Hollywood star groped her breast during a 2000 interview in a London hotel.

The High Court has upheld an earlier ruling that said legal papers could be legally served against Schwarzenegger in the United States and that he was "not peripheral" to the case.

The decision means he could face a libel trial in Britain later this year.