N.M. Stat. § 42-3-9
Reimbursement for expenses where condemnation does not
result in acquisition or is abandoned.
A court having jurisdiction over a proceeding instituted by the displacing agency to
acquire real property by condemnation shall, when required by federal law or by a
federal grant contract governing the project or program, award the owner of any right,
title or interest in the real property a sum which will reimburse the owner for his
reasonable costs, disbursements and expenses, including reasonable attorney,
appraisal and engineering fees actually incurred because of the condemnation
proceedings, if:
A. the final judgment in the proceeding is that the displacing agency cannot acquire
the real property by condemnation; or
B. the proceeding is abandoned by the displacing agency.