On March 17, 1996, at 1855 eastern standard time, a Mooney M20C, N78896, was substantially damaged following a collision with a building and terrain near Kingston, Tennessee. The commercial pilot received serious injuries, and his passenger received minor injuries in the accident. The aircraft was being operated under the provisions of Title 14 CFR Part 91 by the pilot. Visual meteorological conditions existed, and no flight plan had been filed for the personal flight. The flight departed Meadow Lake, Tennessee, and was destined for Jacksboro, Tennessee. The pilot reported that he had just departed Meadow Lake, and was in cruise flight at about 2000 feet above ground level when the aircraft engine lost power. He attempted to execute a forced landing in a field. The aircraft struck a utility building during the forced landing attempt. The FAA Investigator stated he performed a post crash inspection of the aircraft. He indicated there were no visible signs of leakage from either fuel tank resulting from the accident. The airplane was intact and the fuel tanks did not appear to be compromised. The right fuel tank contained no fuel, and the left fuel tank contained a small amount of residual fuel. The airplane was then hooked up to battery power in order to operate the fuel gauges, and the right fuel quantity indicator showed to be almost full, although there was no fuel in the aircraft. The pilot stated he did not perform a complete walk around of the airplane before flight, or visibly check the fuel quantity. Not knowing the right fuel quantity indicator was not working properly, he used only the fuel gauges as a reference for fuel quantity, and thought he had 26 gallons of fuel on board before takeoff.