Long-time Bain supporter Mr Karam said: "Judicial settlement conferences, by their nature, are completely confidential, so apart from saying I was there, I can't say anything else."
Mr Reed QC, confirmed the meeting was "completely private", and he was "not permitted to say anything".
The compensation bid has hit a number of obstacles since Mr Bain first asked for redress from the Government in 2010.
An independent report into his case by retired Canadian judge, Justice Ian Binnie, ruled Mr Bain was innocent "on the balance of probabilities", and ordered him to be paid compensation for spending more than a decade in prison.
However, this was questioned by then Justice Minister Judith Collins, who ordered a review of the report by High Court Judge Robert Fisher, who concluded it "would be unsafe to act upon the Binnie report".
In January 2013, Mr Bain filed for a judicial review of Ms Collins' decision.
Mr Bain was convicted and sentenced to life in prison in 1995 for murdering his parents, two sisters and brother at their Dunedin home, but was acquitted at retrial in 2009.
Earlier this year he married Christchurch primary school teacher Liz Davies in a private ceremony. The couple welcomed their first child, a baby boy, at the beginning of December.
Mr Bain's legal team will be back in court in February.
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David Bain's life:
1994 - David Bain's parents, two sisters and brother are shot and killed in their Dunedin home.
1995 - Jury finds Bain guilty of murdering his family. He is sentenced to a mandatory life term.
1995 - Court of Appeal dismisses appeal.
2007 - Five-day Privy Council hearing in London begins. It orders a retrial.
2009 - Bain is found not guilty on five counts of murder, following a retrial.
2010 - Bain asks the Government for compensation for 13 years in prison.
2012 - Justice Minister Judith Collins rejects Justice Binnie's report after Robert Fisher, QC found a number of alleged errors.
January 10, 2014 - Bain marries Liz Davies in a private ceremony at a Christchurch vineyard.
June 2014 - The couple announce they are expecting their first child.
December 2014 - Liz Davies gives birth to a boy.