Legal Question in Civil Litigation in Colorado

Can they do this? Sure. As we often say, you can sue a ham sandwich. The real issue is whether they have a chance of winning. Unless you promised to pay them back, this sounds like a gift and that is most likely what a court would find absent some facts that would support this being a contract.

Remember, this is all up to the judge or jury so there is no guarantee. Your options are to wait until you are served a lawsuit and then fight it then. You should at least speak with an attorney about your defenses and preparation to fight this effectively.