David Dang was killed when a taxi he relied on for his independence was struck nearly head-on by a car driven by then-25-year-old Kevin Duong in July 2019.
Duong was charged with dangerous driving causing death, but on Tuesday Victorian Supreme Court Justice Jane Dixon found him not guilty.
As David's family wept, she said negligence, even in some glaring respect, was not enough to make out a charge of dangerous driving and she could not rule out a momentary lapse of judgment by Duong.
There was nothing intrinsically dangerous about his driving that day, she said.
It was significant, she said, that police had been critical of the Clayton intersection, where speeds reached up to 80km/h.
Officers suggested during Duong's judge-alone trial that there should have been a red turning arrow for cars turning right - something which has since been added.
David had Duchenne muscular dystrophy and relied on a wheelchair since he was six. He used maxi-taxis to get around, as he did travelling home from an event with family members in St Albans that day.
In handing down her verdict on Tuesday, Justice Dixon noted David's seatbelt was not properly fitted at the time of the crash.
He was not wearing the lap belt and the sash was tucked under his arm instead of over his shoulder.
During the collision David slipped down in his wheelchair and the sash part of the seatbelt pulled tight across his chest. It took his father and taxi driver Lovejeet Singh to free him.
Struggling to breathe after he was freed, David was taken to hospital where he later died.
He was found to have suffered acute respiratory distress syndrome as a result of the chest compression.Â
An expert gave evidence that had the seatbelt been properly fitted, his injuries could have been less serious.
Prosecutors alleged Duong failed to keep a proper lookout while driving and failed to give way.
Justice Dixon found failures to give way would not always be the result of failing to keep a proper lookout.
She pointed to instances where drivers may misjudge the speed or distance of another car.
Duong is still facing more minor charges over the crash, which will be dealt with at a later date.
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