Edward Lupton contracted with the U.S. Navy to build a wooden paddle-wheel gunboat known as a double ender, subsequently named the LENAPEE, in September 1862 for a sum of $75,000.00. The contract provided that the hull should be launched within 126 days (January 13, 1863) from the date of the contract and that the vessel should be completed 50 days after delivery of the hull to the engine builders. The LENAPEE was launched June 7, 1863, a delay of 145 days, and she was completed December 5, 1864, a total delay of 640 days.

The Navy ordered numerous alterations in the plans of the vessel and did not always furnish revised drawings etc, on time. Factors like these, according to Lupton, accounted for the delays which forced the costs in labor and material higher and higher, until it eventually totaled out to $149, 624.61, a loss to him of $68,201.13.Lupton presented his claim to Congress in March, 1864, and in July 1865 to a board of Naval officers, known as the Selfridge Board who determined that Lupton may have lost approximately $18,500.00. They reported the fact to Congress but there was evidently no award ever granted, although claims were continued by Lupton and his estate up to 1917.