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The client was sued for $70,000 over a copyrighted image on their website, leading them to sue their designer. In this video, the speaker offers advice on how to avoid legal issues by using a contract template for web design projects. It is important to consult with an attorney for legal advice and to customize the contract template to fit your specific needs. By using this template, you can establish a strong foundation for your web design projects and protect yourself from potential legal troubles.