diff --git a/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.kt b/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.kt
new file mode 100644
index 00000000000..143f5c4cd89
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.kt
@@ -0,0 +1,24 @@
+// FILE: p/J.java
+
+package p;
+
+public class J<T> {
+    public void foo(Ref<T[]> r) {}
+}
+
+// FILE: p/Ref.java
+
+package p;
+
+public class Ref<T> {
+    public static <T> Ref<T> create() { return null; }
+}
+
+// FILE: k.kt
+
+import p.*
+
+fun main(j: J<String>) {
+    val r = Ref.create<Array<String>>()
+    j.foo(r)
+}
diff --git a/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.txt b/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.txt
new file mode 100644
index 00000000000..c178b4fdc59
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.txt
@@ -0,0 +1,3 @@
+package
+
+internal fun main(/*0*/ j: p.J<kotlin.String>): kotlin.Unit
diff --git a/compiler/testData/loadJava/sourceJava/ErrorTypes.txt b/compiler/testData/loadJava/sourceJava/ErrorTypes.txt
index e7c6ed5f281..a4b4c90be88 100644
--- a/compiler/testData/loadJava/sourceJava/ErrorTypes.txt
+++ b/compiler/testData/loadJava/sourceJava/ErrorTypes.txt
@@ -3,8 +3,7 @@ package test
 public trait ErrorTypes {
 
     public trait Sub : test.ErrorTypes.Super {
-        public abstract fun errorTypeInParameter(/*0*/ list: kotlin.(Mutable)List<kotlin.Array<(out) [ERROR : Unresolved java classifier: T]!>!>!): kotlin.Unit
-        public abstract override /*1*/ /*fake_override*/ fun errorTypeInParameter(/*0*/ list: kotlin.(Mutable)List<kotlin.Array<(out) [ERROR : Unresolved java classifier: T]!>!>!): kotlin.Unit
+        public abstract override /*1*/ fun errorTypeInParameter(/*0*/ list: kotlin.(Mutable)List<kotlin.Array<(out) [ERROR : Unresolved java classifier: T]!>!>!): kotlin.Unit
         public abstract override /*1*/ fun returnErrorType(): [ERROR : Unresolved java classifier: T]!
     }
 
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index c691d8d40b0..9dcb31a36c0 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -7845,6 +7845,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                     doTest(fileName);
                 }
                 
+                @TestMetadata("genericsAndArrays.kt")
+                public void testGenericsAndArrays() throws Exception {
+                    String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/platformTypes/methodCall/genericsAndArrays.kt");
+                    doTest(fileName);
+                }
+                
                 @TestMetadata("int.kt")
                 public void testInt() throws Exception {
                     String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/platformTypes/methodCall/int.kt");
diff --git a/core/descriptors/src/org/jetbrains/jet/lang/types/checker/TypeCheckingProcedure.java b/core/descriptors/src/org/jetbrains/jet/lang/types/checker/TypeCheckingProcedure.java
index d211b868155..b8df692fdd5 100644
--- a/core/descriptors/src/org/jetbrains/jet/lang/types/checker/TypeCheckingProcedure.java
+++ b/core/descriptors/src/org/jetbrains/jet/lang/types/checker/TypeCheckingProcedure.java
@@ -71,8 +71,7 @@ public class TypeCheckingProcedure {
     public boolean equalTypes(@NotNull JetType type1, @NotNull JetType type2) {
         if (TypesPackage.isFlexible(type1)) {
             if (TypesPackage.isFlexible(type2)) {
-                return equalTypes(TypesPackage.flexibility(type1).getLowerBound(), TypesPackage.flexibility(type2).getLowerBound())
-                        && equalTypes(TypesPackage.flexibility(type1).getUpperBound(), TypesPackage.flexibility(type2).getUpperBound());
+                return !type1.isError() && !type2.isError() && isSubtypeOf(type1, type2) && isSubtypeOf(type2, type1);
             }
             return heterogeneousEquivalence(type2, type1);
         }
diff --git a/spec-docs/flexible-java-types.md b/spec-docs/flexible-java-types.md
index 7e449bfa3b0..eff40dee5f7 100644
--- a/spec-docs/flexible-java-types.md
+++ b/spec-docs/flexible-java-types.md
@@ -34,6 +34,12 @@ Least Upper Bound (aka "common supertype"):
 
 * `lub[(A..B), (C..D)] = (lub[A, C], lub[B, D])
 
+Type equivalence (aka `JetTypeChecker.DEFAULT.equalTypes()`):
+
+`T1 ~~ T2 <=> T1 <: T2 && T2 <: T1`
+
+ NOTE: This relation is NOT transitive: `T?` ~~ (T..T?)` and `(T..T?) ~~ T`, but `T? !~ T`
+
 
 ## Loading Java Types