James Mulligan died on 1 May while waiting at a bus-stop with a friend in Gateshead.

The men, aged 18 and 20, were arrested and questioned on suspicion of causing death by dangerous driving.

Mr Mulligan's daughter Carolyn Lynch, 52, said: "We got a call from the officer in charge of the case to say they couldn't bring any charges. I couldn't believe what I was hearing.

We trusted in the law...but as it turned out it was part of our agony. We as the victims have just suffered throughout

Carolyn Lynch

"It's just disgusting, an outrage. My dad was left to die like a dog in the street and these two are walking around laughing having escaped scot-free.

"We took comfort in the fact that after our dad was tragically killed at least his killers would be punished. But this is an insult to him and us.

"When we were told the news we all broke down in tears. It was like the day he died all over again. We are devastated."

Mr Mulligan was hit as he stood waiting for a bus with his 83-year-old friend Ivy Clark.

The car lost control as it sped along Sunderland Road in Gateshead and ploughed into the bus stop.

'Not sufficient'

Mrs Clark suffered bruising and leg injuries and was later released from hospital.

The two men in the car ran away from the scene, but were later arrested.

Mrs Lynch added: "We trusted in the law. Because of the investigation it was eight weeks before we could have his funeral.

"We believed it was all for justice. But as it turned out it was part of our agony. We as the victims have just suffered throughout.

A spokeswoman for the Crown Prosecution Service (CPS) told BBC News Online: "We have very carefully considered this case and have concluded that there is not sufficient evidence to charge anyone with any criminal offence in relation to the incident.

"We can understand how Mr Mulligan's family will be feeling and would be happy to explain to them in more detail the reasons why no one can be prosecuted for this serious crime.

"In order to prove death by dangerous driving we have to be able to prove who was driving the car and in this case we cannot."