White & Case has agreed to a temporary halt in proceedings in its counter claim against Saudi tycoon Sheikh Mohamed Bin Issa Al Jaber after the property magnate tried and failed to obtain confidential documents from the firm regarding Barclays' transactions in the Kingdom.

The firm is now negotiating a settlement after launching a counter claim against Al Jaber, who had originally petitioned to obtain pre-action disclosure of "confidential settlement documents between Barclays Bank PLC and certain agencies of the Kingdom of Saudi Arabia" from White & Case.

Al Jaber, who owns property groups MBI International and Jadawel International, was preparing to launch action against the bank and officials of the Kingdom of Saudi Arabia for "tortious interference" in his business relationships.

White & Case lodged a counterclaim again Al Jaber, looking to enforce the award of counsel fees to the firm. Al Jaber filed a motion to have the counterclaim dismissed, but this was denied by the New York Supreme Court.

After appealing that decision in July, Al Jaber and White & Case are now "in the process of settlement discussions" and have agreed to stay the matter until February 2015 to allow those negotiations to proceed "in the interests of efficiency and judicial economy."

Al Jaber has been represented throughout proceedings by Evan Mandel of New York-based plaintiff litigation boutique Mandel Bhandari.

New York based litigation partner Owen Pell is representing his own firm, White & Case, with US disputes partner Gregory Starner also listed on the court filings.

Last week, Al Jaber launched his claim against Barclays alleging that a secret agreement between the bank and the Saudi government concerning lease payments on two military compounds damaged his hotel and property groups to the tune of $10bn.

A Barclays spokesperson said: "This claim follows a failed attempt by the plaintiffs to obtain discovery of documents earlier this year, which the NY Supreme Court denied as it was an unmeritorious fishing expedition. Barclays believes the claim is without foundation and will vigorously defend it."

White & Case declined to comment.