A demonstration of ongoing settlement negotiations between a plaintiff and the defendant's insurance carrier is a reasonable excuse for the defendant's delay in answering. The court may providently exercise its discretion in denying default judgment and accepting the defendant's answer, deeming it timely filed, nunc pro tunc.
Manne v. Berkowits Sch. of Electrolysis, Inc. NY Slip Op 06997 (1st Dep't October 18, 2018)
Here is the decision.