The legal issue in question appears to be over who owns the rights to the Jesus character.
However, John Turturro doesn’t see that as the issue, because according to him, Jesus is a character that he created.
It’s been a couple of years since John Turturro first mentioned his interest in making a film that would follow from The Big Lebowski but focus on Jesus, the briefly seen character he played in the first film.
He invented the character for a Spanish play he had done several years before the movie, and then the Coen’s “borrowed” him for The Big Lebowski.