diff --git a/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt b/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
index 1624a8b6213..794d67344cc 100644
--- a/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
+++ b/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
@@ -195,9 +195,8 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
         }
         custom {
 
-            fun spacingForLeftBrace(block: ASTNode?): Spacing? {
-                val noBlockSpacing = Spacing.createSpacing(1, 1, 0, settings.KEEP_LINE_BREAKS, settings.KEEP_BLANK_LINES_IN_CODE)
-                if (block != null && block.getElementType() == BLOCK) {
+            fun spacingForLeftBrace(block: ASTNode?, blockType: IElementType = BLOCK): Spacing? {
+                if (block != null && block.getElementType() == blockType) {
                     val leftBrace = block.getFirstChildNode()
                     if (leftBrace != null && leftBrace.getElementType() == LBRACE) {
                         val previousLeaf = FormatterUtil.getPreviousNonWhitespaceLeaf(leftBrace)
@@ -207,12 +206,12 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
                         return Spacing.createSpacing(1, 1, minimumLF, keepLineBreaks, 0)
                     }
                 }
-                return noBlockSpacing
+                return Spacing.createSpacing(1, 1, 0, settings.KEEP_LINE_BREAKS, settings.KEEP_BLANK_LINES_IN_CODE)
             }
 
-            val leftBraceRule = {
+            fun leftBraceRule(blockType: IElementType = BLOCK) = {
                 (parent: ASTBlock, left: ASTBlock, right: ASTBlock) ->
-                spacingForLeftBrace(right.getNode())
+                spacingForLeftBrace(right.getNode(), blockType)
             }
 
             val leftBraceRuleIfBlockIsWrapped = {
@@ -227,12 +226,13 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
             inPosition(parent = WHILE, right = BODY).customRule(leftBraceRuleIfBlockIsWrapped)
             inPosition(parent = DO_WHILE, right = BODY).customRule(leftBraceRuleIfBlockIsWrapped)
 
-            inPosition(parent = TRY, right = BLOCK).customRule(leftBraceRule)
-            inPosition(parent = CATCH, right = BLOCK).customRule(leftBraceRule)
-            inPosition(parent = FINALLY, right = BLOCK).customRule(leftBraceRule)
+            inPosition(parent = TRY, right = BLOCK).customRule(leftBraceRule())
+            inPosition(parent = CATCH, right = BLOCK).customRule(leftBraceRule())
+            inPosition(parent = FINALLY, right = BLOCK).customRule(leftBraceRule())
 
-            inPosition(parent = FUN, right = BLOCK).customRule(leftBraceRule)
+            inPosition(parent = FUN, right = BLOCK).customRule(leftBraceRule())
 
+            inPosition(right = CLASS_BODY).customRule(leftBraceRule(blockType = CLASS_BODY))
 
             val spacesInSimpleFunction = if (jetSettings.INSERT_WHITESPACES_IN_SIMPLE_ONE_LINE_METHOD) 1 else 0
             inPosition(parent = FUNCTION_LITERAL,
diff --git a/idea/testData/formatter/ClassLineBreak.after.inv.kt b/idea/testData/formatter/ClassLineBreak.after.inv.kt
new file mode 100644
index 00000000000..8587ae3be2f
--- /dev/null
+++ b/idea/testData/formatter/ClassLineBreak.after.inv.kt
@@ -0,0 +1,30 @@
+class A {
+    class object {
+    }
+}
+
+class A {
+    class object {
+    }
+}
+
+trait A {
+}
+
+trait A {
+}
+
+object A {
+}
+
+object A {
+}
+
+val a = object {
+}
+
+val a = object {
+}
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
+
diff --git a/idea/testData/formatter/ClassLineBreak.after.kt b/idea/testData/formatter/ClassLineBreak.after.kt
new file mode 100644
index 00000000000..c743930a636
--- /dev/null
+++ b/idea/testData/formatter/ClassLineBreak.after.kt
@@ -0,0 +1,40 @@
+class A
+{
+    class object
+    {
+    }
+}
+
+class A
+{
+    class object
+    {
+    }
+}
+
+trait A
+{
+}
+
+trait A
+{
+}
+
+object A
+{
+}
+
+object A
+{
+}
+
+val a = object
+{
+}
+
+val a = object
+{
+}
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
+
diff --git a/idea/testData/formatter/ClassLineBreak.kt b/idea/testData/formatter/ClassLineBreak.kt
new file mode 100644
index 00000000000..9ca8d1ce8d3
--- /dev/null
+++ b/idea/testData/formatter/ClassLineBreak.kt
@@ -0,0 +1,35 @@
+class A {
+    class object {
+    }
+}
+
+class A
+{
+    class object
+    {
+    }
+}
+
+trait A {
+}
+
+trait A
+{
+}
+
+object A {
+}
+
+object A
+{
+}
+
+val a = object {
+}
+
+val a = object
+{
+}
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
+
diff --git a/idea/testData/formatter/FunctionLineBreak.after.kt b/idea/testData/formatter/FunctionLineBreak.after.kt
index 9559593186b..080e403e494 100644
--- a/idea/testData/formatter/FunctionLineBreak.after.kt
+++ b/idea/testData/formatter/FunctionLineBreak.after.kt
@@ -18,7 +18,8 @@ fun f() //eol comment
 {
 }
 
-class A {
+class A
+{
     fun f()
     {
     }
diff --git a/idea/testData/refactoring/changeSignature/AddConstructorVisibilityAfter.kt b/idea/testData/refactoring/changeSignature/AddConstructorVisibilityAfter.kt
index c189c633905..34a111ffaa2 100644
--- a/idea/testData/refactoring/changeSignature/AddConstructorVisibilityAfter.kt
+++ b/idea/testData/refactoring/changeSignature/AddConstructorVisibilityAfter.kt
@@ -1,4 +1,4 @@
-class C1 protected (val x: Any){}
+class C1 protected (val x: Any) {}
 
 fun f() {
   val c = C1(12);
diff --git a/idea/testData/refactoring/changeSignature/AddConstructorVisibilityBefore.kt b/idea/testData/refactoring/changeSignature/AddConstructorVisibilityBefore.kt
index 0c95fb13036..0c8204605ed 100644
--- a/idea/testData/refactoring/changeSignature/AddConstructorVisibilityBefore.kt
+++ b/idea/testData/refactoring/changeSignature/AddConstructorVisibilityBefore.kt
@@ -1,4 +1,4 @@
-class <caret>C1{}
+class <caret>C1 {}
 
 fun f() {
   val c = C1();
diff --git a/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsAfter.kt b/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsAfter.kt
index 3dd24059fe7..b40132f6d0f 100644
--- a/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsAfter.kt
+++ b/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsAfter.kt
@@ -1,6 +1,6 @@
 open class C1 protected (x3: ((Int) -> Int)?,
                          var _x2: Float,
-                         val _x1: Int = 1){
+                         val _x1: Int = 1) {
     fun bar() {
         val y1 = _x1;
         val y2 = _x2;
diff --git a/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsBefore.kt b/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsBefore.kt
index f18ff2adeb7..e66856e92e8 100644
--- a/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsBefore.kt
+++ b/idea/testData/refactoring/changeSignature/ConstructorSwapArgumentsBefore.kt
@@ -1,4 +1,4 @@
-open class C1 protected (<caret>val x1: Int = 1, var x2: Float, x3: ((Int) -> Int)?){
+open class C1 protected (<caret>val x1: Int = 1, var x2: Float, x3: ((Int) -> Int)?) {
     fun bar() {
         val y1 = x1;
         val y2 = x2;
diff --git a/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java b/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
index dad1b7b687e..ea3f3e5a703 100644
--- a/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
@@ -49,6 +49,11 @@ public class JetFormatterTestGenerated extends AbstractJetFormatterTest {
             doTest("idea/testData/formatter/Class.after.kt");
         }
         
+        @TestMetadata("ClassLineBreak.after.kt")
+        public void testClassLineBreak() throws Exception {
+            doTest("idea/testData/formatter/ClassLineBreak.after.kt");
+        }
+        
         @TestMetadata("CommentInFunctionLiteral.after.kt")
         public void testCommentInFunctionLiteral() throws Exception {
             doTest("idea/testData/formatter/CommentInFunctionLiteral.after.kt");
@@ -362,6 +367,11 @@ public class JetFormatterTestGenerated extends AbstractJetFormatterTest {
             JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.TestsPackage", new File("idea/testData/formatter"), Pattern.compile("^([^\\.]+)\\.after.inv.kt$"), true);
         }
         
+        @TestMetadata("ClassLineBreak.after.inv.kt")
+        public void testClassLineBreak() throws Exception {
+            doTestInverted("idea/testData/formatter/ClassLineBreak.after.inv.kt");
+        }
+        
         @TestMetadata("DoWhileLineBreak.after.inv.kt")
         public void testDoWhileLineBreak() throws Exception {
             doTestInverted("idea/testData/formatter/DoWhileLineBreak.after.inv.kt");