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In this video tutorial, the client was sued for $70,000 due to a copyrighted image placed on the website by the designer. The client then sued the designer, resulting in a complicated legal situation. The video aims to provide tips on avoiding such nightmares. The creator emphasizes that they are not a lawyer and cannot provide legal advice. They share a contract template used for all web design projects, providing a foundation for adding necessary details and legalities. It is recommended to consult with an attorney for specific contract needs.