N.M. Stat. § 73-12-55
Upon the hearing of such special proceedings the court shall find and determine whether the notice of the filing of the petition has been duly published for the time and in the manner in this act [73-12-1 to 73-12-57 NMSA 1978] prescribed, and shall have power and jurisdiction to examine and determine the legality and validity of, and approve and confirm, each and all of the proceedings for the organization of said district, including the question of benefits received by each and every tract of land within said district, under the provisions of this act, from and including the petition for the organization of the district, and all other proceedings which may affect the legality or validity of said bonds, the order of sale and the sale thereof, and benefits received by each and every tract of land within said district. The court may make a general order determining the question of benefits, except as to the issue raised by any landowner appearing, in which event there shall be a definite and specific finding as to benefits received by the land owned by such appearing landowner. The court in inquiring into the question of benefits received, the regularity, legality or correctness of said proceedings, must disregard any error, irregularity or omission, which does not affect the substantial rights of the parties to said special proceedings, or others whose rights or interests are involved in such proceedings. Upon issue joined the court shall hear the evidence, and the court may, by decree, determine the question of benefits and approve and confirm such proceedings in part, and disapprove and declare illegal or invalid other or subsequent parts thereof.
If the court finds that such proceedings have been legal and valid, and that the lands within said district will be benefited to an amount equal to the bonds proposed to be issued, and the tax necessary to be levied for the payment thereof and delinquencies thereon, as in this act provided, it shall, by decree, approve and confirm the same and declare the tax to be levied and the bonds issued and sold or to be issued or sold thereunder, to be valid. And if the court finds any part of such proceedings for the organization of the district, or for the levy of the tax, or for the issue and sale of bonds or other purposes of the district to be illegal, invalid or insufficient, it may direct such proceedings or action to be taken as will remedy the defects in the former proceedings. And upon presentation to the court of satisfactory evidence that such action or proceedings have been duly taken as directed the court may by its decree approve and confirm said proceedings and declare said bonds to be valid. The costs of the special proceedings may be allowed and apportioned between the parties in the discretion of the court.
The judgment or decree when finally made and entered shall be res judicata in all cases arising in connection with the organization of the district and the levy and collection of taxes for payment of the principal or interest of the bonds or of moneys due under contracts or obligations of the district, including the question of benefits received by each tract of land within said district.
NMS § 73-12-55