The restaurant, which was popular for university graduate celebration dinners, closed during the Covid-19 pandemic but was unable to reopen due to floods and an electrical fire in the Art Deco property.
The UK Supreme Court, which is sitting in Scotland for the first time this week, was due to hear the case, but justices were told the claim had been settled just hours before.
Forthwell Limited, which has traded as Rogano since 1935, claimed landlord Pontegadea UK should compensate it for lost profits, with repairs still incomplete.
The UK’s highest court was due to hear the long-running dispute when news of the settlement between Forthwell Limited and Pontagadea UK, which is owned by Spanish billionaire and Zara clothing founder Amancio Ortega, was announced.