The damaged crane in Manhattan. Photo: Peter Foley

LEND Lease is being sued in a federal court in New York over the collapse of a construction crane at a partially completed 90-storey luxury apartment building while superstorm Sandy pounded the city two weeks ago.

Two New York dentists accuse the Australian property company of negligence for ''failing to safely prepare, maintain, operate and secure'' the crane, which they say cost them ''substantial income'' due to the closing of their businesses as well as ''loss of goodwill and reputation''.

''Businesses and individuals within the evacuation zone were deprived of the use and enjoyment of their offices and homes, respectively, despite still having to pay expenses including but not limited to rent, payroll and operating expenses,'' the plaintiffs said in the complaint.

Lend Lease is the construction manager for the luxury One57 apartment building where the crane partially collapsed on October 29 as wind gusts from Sandy buffeted Manhattan.

Buildings near the site, including Le Parker Meridien Hotel and the Salisbury Hotel, were evacuated and nearby streets were closed.



One57, being built by Extell Development, is poised to be New York's tallest residential building.

The tower set a price record for a single Manhattan residence in May, when a 1000-square-metre unit, spanning the top two floors, sold for about $US90 million ($A87 million).

The building, located between Sixth and Seventh avenues, is scheduled to open in mid-2013.

The lawsuit - which also names Extell as a defendant - is seeking more than $US5 million in damages, although the amount would likely be more, given the scope of the evacuation and the number of residents who were affected, Scott Bursor, an attorney for the plaintiffs, said.

Lend Lease has declined to comment.