Ordered that the order is affirmed insofar as appealed from, with costs.
The Supreme Court providently exercised its discretion in compelling the plaintiffs to accept the verified answer of South Bay Water Taxi and John Sanders, which was untimely served ( see, CPLR 3012 [d]; Mondrone v. Lakeview Auto Sales Serv., 170 A.D.2d 586). Considering the absence of prejudice to the plaintiffs the meritorious nature of the defense, and the public policy in favor of resolving cases on the merits, we agree that the 2 1/2-month delay in serving the answer should be excused ( see, CPLR 2005; Van Man Adhesives Corp. v. City of New York, 236 A.D.2d 465; Albin v. First Nationwide Network Mtge. Co., 188 A.D.2d 575; I.J. Handa, P. C. v. Imperato, 159 A.D.2d 484).
Mangano P. J., Joy, Friedmann and Goldstein, JJ., concur.