The family of a 2-year-old Princess Anne boy who was struck and killed by a boardwalk tram last year will receive $400,000 and a bench memorial as part of a settlement agreement with the Town of Ocean City.

While denying any wrongdoing regarding the tram accident that claimed the life of a toddler, the city has agreed to pay the child’s family $400,000, according to an Aug. 7 settlement obtained through a Maryland Public Information Act request filed by the OC Today-Dispatch. The city has also agreed to cover the costs of placing the child’s name on a bench plaque as part of the city’s popular Dedication Bench Program.

On Aug. 20, 2024, just after 8 p.m., first responders were called to the boardwalk near Dorchester Street for a fatal pedestrian collision in the concrete tram lane. The initial investigation revealed the 2-year-old boy was struck by a tram while he ran from the beach toward the wooden portion of the boardwalk, also known as Atlantic Avenue.

However, an incident report issued Dec. 9, 2024, delved deeper into the accident on what state officials consider to be a public road. Investigators concluded various equipment violations — including improper braking systems and towing capabilities — played some role in the fatality.

“The combination of vehicles and braking systems involved in the collision played a consequential role in the death of [child’s name redacted],” Cpl. Michael Karsnitz, an investigator in the case, reported. “The Jeep and both trailers it was towing was in violation of the Maryland Transportation Article.”

In light of the findings detailed in the incident report, the city announced in October that the tram service would not return to the boardwalk next year, or any year thereafter. During a recent meeting, Mayor Rick Meehan noted that the challenges of keeping the trams in operation while complying with state transportation laws and licensing requirements “became insurmountable.”

“But what we are doing is the council is looking at — through the city manager and transportation and public works — different options, other things we might be able to do,” he said. “So, the book is open. If there is ever a path for the tram, I think it’s something we’d all want to pursue.”

City Manager Terry McGean also acknowledged the city had been notified by the victim’s family of a potential lawsuit, but that the “matter is now resolved and no litigation was ever filed.” The city and the victim’s family have reached a private agreement, which was settled out of court in early August.

The legal document effectively ends any claims against the city relating to the fatality and prevents the family from suing in the future. It also states that Ocean City makes no admission of wrongdoing or liability but acknowledges the tram trailer involved in the incident was maintained by city employees within the Ocean City Service Center.

The settlement amount of $400,000 represents the cap set by the Maryland Tort Claims Act, which allows individuals to sue the state and its employees for negligence in cases of personal injury or property damage, up to a certain amount. Local governments cannot be held liable to any one person for more than $400,000, according to the People’s Law Library of Maryland.