The state Board of Public Works approved a $1.5 million settlement Wednesday in the case of two teenagers who were hit and killed by a light rail train in July in Lutherville.

The board - made up of Gov. Martin O'Malley, Comptroller Peter R. Franchot and Treasurer Nancy K. Kopp - did not discuss the payment, which was ratified unanimously with half a dozen other items.

Jarrett Connor Peterson and Kyle Patrick Wankmiller, both 17, were fatally struck July 5 by a northbound train while walking along the tracks that are normally used for southbound operations. The Maryland Transit Administration had switched northbound traffic onto the tracks because of an earlier act of vandalism on the northbound tracks.

The operator of the train that struck the boys apparently did not notice them on the tracks and did not stop the train. Another train later passed the scene of the accident without noticing the bodies on the tracks. The bodies were later discovered by a fare inspector from a third train that came upon the scene.

Maryland Transit Administration Police began an investigation, but Baltimore County police took over at the request of relatives of the victims.

While the county police ruled the boys' deaths an accident and no criminal charges were filed, an MTA internal investigation led to the firing of two train operators and disciplinary action against six other employees.

Jay Miller, a lawyer for the families, filed legal notice with the state of intent to sue. Among the allegations, he said, were that the train operator took his eyes off the track in the crucial seconds before the accident and had no satisfactory explanation for his actions. In addition, Miller said, the plaintiffs were prepared to show that MTA operators did not report the sighting of the boys on the tracks and that the agency had no procedure for notifying operators to take added precautions when trains were being operated on alternate tracks.

Miller, of Miller, Murtha & Psoras in Lutherville, said the settlement was reached in mediation before a lawsuit was filed. He noted that the MTA has since adopted new policies regarding trespassers on the tracks and single-track operations.

"The families are very pleased with the outcome and they are pleased that the MTA has made changes that they think will help prevent an accident like this is the future," he said.

While Maryland law generally precludes plaintiffs whose negligence contributes to their injury from collecting damages, Miller said that doctrine was trumped by a provision in the law holding the party with the "last clear chance" to prevent an accident responsible. He said that in such cases, plaintiffs have to show the defendant had a period of time in which to avert the accident.

The MTA declined to answer questions about the settlement, citing a confidentiality agreement, except to issue a statement of sympathy from Administrator Ralign T. Wells.

"For the MTA," Wells said, "this means the agency, its management and its employees can move forward with a clear focus on operating and maintaining the safest transit system possible. The safety of our customers and our employees has always been, and will continue to be, the MTA's top priority."