JUNEAU, Alaska (AP) — The Alaska Supreme Court has ruled that the state should not have attempted to transfer an area of forest land to the Alaska Mental Health Trust for potential logging.

The Southeast Alaska Conservation Council filed a lawsuit in 2013 after learning the state planned to transfer the Kuiu Island parcel to the mental health trust, which commercially logs in the region, CoastAlaska reported Monday.

A 1994 agreement directed the Alaska Department of Natural Resources to manage Kuiu Island’s No Name Bay area south of Juneau for wilderness conservation and habitat.

The co...