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A client faced a $70,000 lawsuit for using a copyrighted image added by their designer during website development. The client then sued the designer, leading to a complicated situation. In this tutorial, the speaker aims to provide guidance on avoiding such disasters. They clarify that they are not a legal professional and recommend consulting an attorney regarding contracts. The video shares a contract template used for web design projects, offering a solid foundation that can be customized with additional details and legalities to help protect against similar issues.