In a legal setback for John Travolta, a Federal judge has ruled a sailor's lawsuit against the Grease star, claiming the actor sexually assaulted him on a cruise ship, will not go to arbitration as Travolta's attorneys had requested,  Breaking Celebrity News is reporting.

As we previously reported, Chilean-born Fabian Zanzi is suing Travolta, 58, for assault, battery, and infliction of emotional distress. He claims the star – who has long been dogged by gay rumors - accosted him while he was working on the Royal Caribbean cruise ship in 2009, and the actor was a guest on the boat. Zanzi, a former employee of the cruise line, was in charge of VIP guests when the alleged incident took place. Zanzi told South American news website ABC.es: “He (Travolta) had something on his neck. I thought it was a fuzz. As I approached, he took off his white coat and was naked. He hugged me and asked me to do a massage.” Zanzi alleges that Travolta offered $12,000 to have sex with him, but he says he refused.