On September 7, 1998, at 1100 eastern daylight time, a Vertical Concepts Inc. SeaRey, N39CS, nosed over on landing on Lake Chatuge, Hiawassee, Georgia. The personal flight was operated by the pilot under the provisions of Title 14 CFR Part 91 and visual flight rules. Visual meteorological conditions existed at the time of the accident. No flight plan was filed for this local flight. The commercial pilot and one passenger received minor injuries, and the airplane was substantially damaged. The flight originated at 1030 on Lake Chatuge. According to the pilot, he was doing touch and go landings on the lake. On the accident landing, after making a normal touchdown, the airplane flipped over. The pilot stated that when the airplane was removed from the water he noted the delamination of the fiberglass hull and suspected that it caused the accident.