Order unanimously modified on the law and as modified affirmed without costs, in accordance with the following Memorandum: Supreme Court properly granted defendants leave to serve a second amended answer, but abused its discretion in imposing sanctions, costs, disbursements and attorney's fees as a condition (see, Menne Nursery Corp. v Rebco Steel Corp., 73 A.D.2d 1059). The proposed pleading will not cause plaintiffs significant prejudice or expense and was interposed within a reasonable time upon the advice of substituted counsel. The court properly denied, without prejudice, plaintiffs' motion to dismiss affirmative defenses and counterclaims.