Published Friday, 09 December 2011
The 15-year-old suffered two gunshot wounds to the head after a soldier opened fire in the Creggan Estate on 31 July 1972 during a major army operation to clear republican no go areas in the city.
The jury found that Daniel had posed no threat - and that soldiers made no attempt to administer medical attention to him or his cousin who had also been injured in the shooting.
The initial investigation into Daniel's death was conducted by the military - not the RUC - and was found to be flawed and inadequate.
The teenager's family has fought a lengthy battle to clear his name.
'Soldier B' - the soldier who killed Daniel - said in his account that he had shouted three warnings at him before opening fire.
This was rejected by the jury at the end of the five day inquest held in Derry.
After over three and a half hours of deliberation, they returned with a unanimous verdict on Friday evening.
Speaking afterwards, the Hegarty family said they felt "vindicated" by their verdict.
They maintain that they want to see 'Soldier B' prosecuted.
Daniel's sister, Margaret Brady, told UTV that he will always be part of the family.
"We're very happy with the outcome but we didn't come here for revenge. We just came here to get truth, justice," she said, fighting her tears.
"I feel very, very happy that Daniel's name is now cleared of all wrongdoing.
"In a sense it brings closure, but we will always remember our brother.
"We remember his birthdays, we'll remember Christmas. He'll always be part of our lives."