Danny Clyde Robinson, 50, faced the felony charge after being in an August 2007 collision on Plymouth County roads just north of Merrill that claimed the life of 78-year-old Fern Nielson, of Lake Norden, S.D.
After about 10 hours of deliberations, the jury announced its unanimous acquittal.
The trial started more than a week ago.
Robinson had no comment after the verdict was announced.
Plymouth County Attorney Darin Raymond, prosecuting attorney on behalf of the State of Iowa in this case, said the jury had faced two "fighting issues."
"One: was there proof that he (Robinson) was under the influence, and two: was intoxication the cause of the collision resulting in Fern Nielson's death," Raymond said. "The jury would have to find proof for one, then the other or come to the verdict of acquittal."
In defense attorney Jack Faith's closing argument Tuesday, he pointed to the darkness of the night Aug. 11, 2007, and that the second person on the scene testified she did not see the two cars collided on the road in front of her until a witness pointed them out.
Faith also suggested it was possible a tennis shoe, shown near the gas and brake pedals of Robinson's van in one of the evidence photos from the night of the accident, may have prevented Robinson from avoiding the accident.
Raymond, in his closing argument Tuesday, pointed out that Robinson admitted to law enforcement officers that he had been drinking the night of the accident and that officers reported he smelled strongly of alcohol, was swaying back and forth, spoke with slurred speech and had watery, bloodshot eyes as evidence that Robinson had been under the influence.
Several law enforcement agents on the scene the night of the accident also testified that they had no doubt in their minds Robinson was driving under the influence of alcohol.
The accident in question took place about 1:23 a.m. near Merrill on C-38, one-third mile west of Kestrel Avenue.
Nielson had reportedly been in a one-vehicle accident about 1:15 a.m. near the T-intersection of K-42 and C-38, striking fence posts in the ditch before getting her car back on the road, according to Betsworth.
According to Kelsey Sitzmann's testimony, she arrived on the scene and offered Nielson her cell phone to call 911.
About four minutes after Nielson made the 911 call, she was struck by Robinson's 1995 Chevrolet Lumina van outside her white 1999 Buick.
Sitzmann testified that she had been parked near the accident with the four-way flashers blinking on her car and had been standing in the road trying to wave down Robinson's vehicle before he hit Nielson.
Robinson's van, Sitzmann testified, had been traveling at highway speed when he passed her.
Nielson was found alive on the scene, pinned under Robinson's van, but was pronounced dead at Mercy Medical Center in Sioux City, after being taken there by helicopter, Betsworth said.
Robinson was taken into custody that night and charged with operating while intoxicated, second offense, and later released on bond.
When the charge of vehicular homicide was filed, Robinson turned himself in to the Plymouth County Jail and was released on a $50,000 bond.
Had Robinson been found guilty Wednesday, he would have faced up to 25 years in prison.
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Pretty much an error by the officer on the scene got this guy acquitted. Some evidence was not allowed to be heard by the jury. What a sad day for the Nielsen family..................