Order modified, as a matter of discretion, by deleting the third, fourth and fifth decretal paragraphs thereof, and substituting therefor a provision denying the afore-noted branch of plaintiffs' motion. As so modified, order affirmed, without costs or disbursements, and appellant's answer is deemed served, on condition that it pays to plaintiffs $1,000 within 20 days after service upon it of a copy of the order to be made hereon, with notice of entry; in the event the condition is not complied with, order affirmed, with costs.
In light of the circumstances and the legislation which modified the Barasch-Eaton rule ( Barasch v Micucci, 49 N.Y.2d 594; Eaton v Equitable Life Assur. Soc., 56 N.Y.2d 900; see CPLR 2005, 3012, subd. [d]; L 1983, ch 318) and in pursuit of the long-established public policy that actions be resolved on their merits, we exercise our discretion to relieve appellant of its default. We have imposed, however, an appropriate sanction on appellant (see Newman v Goodman Bros. Monuments, 100 A.D.2d 840; Salch v Paratore, 100 A.D.2d 845; Mineroff v Macy's Co., 97 A.D.2d 535; Robinson v USAA Cas. Ins. Co., 97 A.D.2d 837). Lazer, J.P., Brown, Boyers and Eiber, JJ., concur.