On January 8, 2006, about 1700 Pacific standard time, a Piper Seneca, N4495T, veered off the runway and collided with a hangar at Van Nuys Airport, Van Nuys, California. Hollywood Aviators operated the airplane under the provisions of 14 CFR Part 91, as a rental check-out instructional flight. The airplane sustained substantial damage. The certified flight instructor (CFI) and one passenger sustained minor injuries, and the commercial pilot, the pilot-in-command, and one passenger were not injured. The flight departed Van Nuys about 1520. Visual meteorological conditions prevailed for the local area flight, and no flight plan had been filed. In the commercial pilot's written statement to the National Transportation Safety Board, he stated that the purpose of the flight was to receive a check-out from the operator so that he would be able to rent airplanes from them. He stated that he was pilot-in-command (PIC), and was manipulating the flight controls during the flight. The PIC reported that the landing prior to the accident was without any problems. They taxied back for takeoff on runway 34R. They requested and received permission for a closed-circuit pattern with a full stop landing. After takeoff they climbed to traffic pattern altitude. The PIC reported that on the downwind leg, abeam the numbers, the certified flight instructor (CFI) reduced the right throttle to simulate an engine out. The pilot indicated that they were number 2 for landing. No discrepancies were noted during the simulated engine out and approach for landing. The PIC stated that the landing gear was down, with one notch of flaps selected. He noted that there was a "pretty good crosswind from the left," and he input a crosswind correction (aileron and rudder). He then added another notch of flaps. As he aligned the airplane with the runway and started to flare, the CFI commented that they were a little high. The PIC thought they might land hard. The next thing he recalls was the airplane moving aggressively to the right with the left wing coming up. The right wing struck the ground and the airplane veered to the right off the runway and onto the taxiway. The pilot stated that at this point he was unsure if they were airborne or not, but thought they were bouncing. The CFI took over the flight controls and pushed the nose down to get "us firmly on the ground." The airplane landed with a side load and collided with the corner of a hangar. The CFI indicated that there were no problems encountered with the simulated engine out setup and approach for landing. He stated that all of the landing prechecks had been completed, and the power was reduced to idle on both engines for the landing flare. As the airplane touched down, the left wing "abruptly and rapidly shot up," the airplane lifted off the ground, with the right wing striking the ground. The airplane yawed to the right and exited the runway. The CFI stated at this point the airplane was in a nose high steep right bank, and that the PIC was not able to regain airplane control. The CFI stated that he called out "power out" and reached over to the power quadrant to confirm the throttles were off. He then pushed the control yoke forward to lower the nose. The CFI stated that they impacted the taxiway, struck a taxiway sign, and started to slide sideways. At that point the landing gear collapsed and the airplane slid into a hangar. Both pilots reported no mechanical problems with the airplane prior to the accident.