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The client was sued for $70,000 due to a copyrighted image used by the designer on the website. The client then sued the designer, leading to a messy situation. The video aims to provide tips on avoiding such issues. The creator emphasizes that they are not a lawyer and do not offer legal advice. They share a contract template used for web design projects, which can be customized to meet specific needs. It is recommended to consult with a lawyer for legal matters.