Appeal from an order of the Civil Court of the City of New York, Kings County (Genine D. Edwards, J.), entered August 22, 2006. The order, insofar as appealed from as limited by the brief, granted defendant's motion to vacate the default judgment entered against it.

Order modified by providing that defendant's motion to vacate the default judgment is granted on condition that defendant pay plaintiff $750 within 10 days of the date of the order entered hereon; otherwise motion denied. As so modified, order affirmed insofar as appealed from, without costs.

A party seeking to vacate a judgment entered on default is required to demonstrate a reasonable excuse for the default and the existence of a meritorious defense (Titan Realty Corp. v Schlem, 283 AD2d 568 [2001]; Matter of Gambardella v
Ortov Light., 278 AD2d 494 [2000]). In light of the policy of the courts to favor dispositions of claims on the merits, and not by default judgment (see Bell v Toothsavers, Inc., 213 AD2d 199 [1995]), we agree with the Civil Court that defendant's motion to vacate the default judgment should have been granted. However, under the circumstances presented, we are of the opinion that vacatur should have been conditioned on defendant paying plaintiff the sum of $750.

Weston Patterson, J.P., Golia and Belen, JJ., concur.