On June 2, 1994, about 1610 hours eastern daylight time, a Piper PA-24-260, N9041P, an instructional flight, forced landed in an open field after the engine lost power during takeoff climb from Orange County Airport, Montgomery, New York. Visual meteorological conditions existed. The certificated flight instructor received minor injuries; the student pilot was not injured. The airplane was substantially damaged. The local flight was conducted under 14 CFR Part 91. The instructor was giving dual instrument instruction to the student who was a certificated private pilot. According to the instructor, upon completion of the instructions, the student requested multiple landing practice in crosswind conditions. The instructor stated, "I was distracted by his performance and remiss in verification of fuel status in execution of the before landing checklist. Power was lost on climbout. Additional check was futile. Committed to off field landing. Damage occurred on roll out through a ditch in terrain." The FAA interviewed the instructor and student who indicated they were using and exhausted the fuel from the left tank. According to the FAA, examination of the airplane revealed the left tank was empty. An undetermined amount of fuel was in the right tank.