At approximately 1215 Mountain time, the airplane sustained substantial damage when it impacted a chain link fence while taxiing. The commercial pilot and his passenger were not injured. Visual conditions prevailed While taxiing out for takeoff and using differential braking for directional control, the brakes failed, the airplane departed the taxiway, and went down an embankment, striking the fence. The left composite wing tip was split open and the wings leading edge had an 8- to 10-inch chordwise rip in it.