CLEARWATER, Fla. — The Pinellas Suncoast Transit Authority (PSTA) Board of Directors is expected to vote Wednesday on a proposed settlement that would resolve all 37 claims filed against the agency following last year’s deadly Clearwater Ferry crash.

If approved, PSTA would pay a $300,000 settlement to be divided among the 37 passengers involved in the crash. The agreement also includes about $200,000 in legal fees. In March, PSTA entered into an agreement with specialized maritime legal counsel.

The Clearwater Ferry operated independently for years before entering into a contract with PSTA just months before the crash. Under the agreement, the ferry company is reimbursing PSTA for the legal fees associated with the crash case.

The April 27, 2025 crash claimed the life of 41-year-old Jose Castro, a local father, when a recreational boat collided with the Clearwater Ferry from behind. On board were 45 passengers taking the trip back from Clearwater Beach to Coachman Park following the final evening of the Sugar Sand Festival. After the crash, the second vessel was located a few miles away from the scene.

Anthony Palermo, a Stetson Law professor, independently reviewed the claim and settlement and says PSTA being a government entity can take a different legal route.

“Anytime there’s a government entity involved they could potentially raise the issue of sovereign immunity and essentially say our liability is capped at a certain amount, unless we agree to waive it or the legislature agrees to approve more recovery,” he explained.

Palermo said while this would end PSTA’s involvement in the case, legal battles are far from over.

“There’s going to be litigation involving all these parties,” he said. 

Several lawsuits remain pending against the Clearwater Ferry, its operator, the ferry’s captain and its insurer, Atlantic Specialty Insurance Company. Separate legal proceedings also continue against Jeff Knight, the boat operator accused of colliding with the ferry.

Knight has been charged with leaving the scene of a boating accident involving serious bodily injury or death. His criminal case is scheduled to go to trial in the coming months. FWC has led this part of the investigation. 

If the settlement is approved by the board, it would resolve all claims against PSTA related to the crash and end the agency’s involvement in the litigation.