On May 31, 2016, about 1045 central daylight time, an American Legend Aircraft Company AL3, N156WB, collided with terrain following a total loss of engine power after takeoff from Perdido Winds Airpark (AL08), Elberta, Alabama. The sport pilot incurred minor injuries and the airplane was substantially damaged. Visual meteorological conditions prevailed and no flight plan was filed for the personal flight. The airplane was registered to and operated by MHOC LLC, under the provisions of 14 Code of Federal Regulations Part 91.The pilot was a mechanic for the company that owned the light-sport airplane. He stated that the airplane was due for a condition inspection, and he wanted to "warm the airplane up" before starting the inspection. He arrived at 82J and fueled the airplane with 17 gallons of fuel, waited a period of time, and sampled fuel from the fuel tanks. He completed the preflight inspection and took off for AL08.

The pilot made one full stop landing at AL08, taxied back, and departed runway 35 for two touch-and-go landings. After an uneventful touch-and-go landing to runway 35, he made a teardrop turn and planned to land on runway 17. He again performed another uneventful touch and go landing, and while climbing out decided he would return for another full stop landing on runway 35. During his slight right climbing turn, the engine "just quit." The airplane was approximately 200 feet above the ground, and he attempted to continue the turn back to runway 35; however, the airplane subsequently impacted trees about 50 feet short of the runway. The pilot observed fuel "pouring out" and shut off the electrical system prior to exiting the airplane.

The engine was then sent to the manufacturer for a full power test-run. The engine was set on an engine run stand and a slave carburetor was installed, since the original carburetor was fractured during impact. The engine started immediately and was idled for several minutes to warm up before the high power runs. The engine was run at several different power settings, from idle to full power, and all parameters were within the manufacturer's specification limits. After approximately 30 minutes of run time, the engine was shut down and no anomalies were noted.