The settlement was reached Friday. Perrotte's case was to go to trial tomorrow.
It's the fifth such settlement in priest sex-abuse cases involving the Diocese of Burlington. The biggest one was for $965,000, in 2006.
The diocese faces 24 other sex abuse lawsuits.
"Bishop Salvatore Matano deeply regrets any hurt that John Perrotte has experienced because of the actions of Alfred Willis," the diocese said in a statement released by church lawyer Kavi Shahi. "The Bishop sincerely prays for John Perrotte and all victims of sexual abuse."
Perrotte's lawyer, Jerome O'Neill, said his client wanted an apology from the diocese.
"He was frustrated that the diocese was unwilling to take responsibility for what it did to put Willis in a position to molest him, but he is relieved to have all this behind him," O'Neill said.
According to court papers, Willis was removed from St. Ann Church in Milton in 1980 amid complaints about his sexual conduct with boys.
The bishop at the time, John Marshall, knew about Willis's conduct with boys at St. Anthony's Church in Burlington when Willis was assigned to St. Ann Church, according to church records.
But he didn't tell the Milton parish until irate parents took their concerns to St. Ann's pastor, according to church records.
In a deposition, Perrotte said he was 13 when he met Willis in 1979 and that Willis molested him as they slept together in a tent at his parents' home.
In the first sex case against the diocese to go to trial, a jury found in December that the diocese failed to adequately supervise Willis, but said that under the statute of limitations, Turner should have brought the claim by 1998.
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