SANDPOINT - A 1st District Court judge ruled on Thursday that business records pertaining to Percussionaire Corp. should be kept from public view.

The Sagle company's annual report for 2012 and business projections were filed with the court in response to a lawsuit Percussionaire brought against its former president and CEO, Adel Bougatef.

Percussionaire sued Bougatef last month, contending he hijacked patented technology to develop competing products for a company he planned to start. The company cut ties with Bougatef as a result of the alleged betrayal.

Bougatef denied the allegations and filed a counterclaim alleging that he was fired for bringing accounting irregularities to light. He also contends some of the patents have lapsed.

Bougatef's counsel filed the annual report as an exhibit, arguing that it directly refutes allegations raised in Percussionaire's suit.

Percussionaire's attorney, C. Matthew Andersen, moved to seal the exhibit because it contained confidential information about the company. The exhibit held information about sales volumes, marketing strategies, product development and finances.

"That is the very essence of proprietary information of a business," Andersen said via phone during the hearing.

Bougatef's attorney, Hank Marino, objected to the sealing. He argued that the records lacked the specificity that would justify sealing and that Percussionaire opened the door in its allegations against his client.

"The plaintiff brought this out in their own pleadings," said Marino, who also took part in the hearing by phone.

Judge Barbara Buchanan granted the motion to seal, ruling that keeping the exhibit from public view but accessible to the litigants would not jeopardize the parties' respective cases.

"I'm not seeing that there's really any right of the public to have any of these documents," Buchanan said.