diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
index f960da815bb..6e1178a050d 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
@@ -432,6 +432,7 @@ public class JavaDescriptorResolver {
             }
             return functionDescriptor;
         }
+        DeclarationDescriptor classDescriptor = method.hasModifierProperty(PsiModifier.STATIC) ? resolveNamespace(method.getContainingClass()) : resolveClass(method.getContainingClass());
         PsiParameter[] parameters = method.getParameterList().getParameters();
         FunctionDescriptorImpl functionDescriptorImpl = new FunctionDescriptorImpl(
                 owner,
@@ -443,7 +444,7 @@ public class JavaDescriptorResolver {
         initializeTypeParameters(method);
         functionDescriptorImpl.initialize(
                 null,
-                DescriptorUtils.getExpectedThisObjectIfNeeded(owner),
+                DescriptorUtils.getExpectedThisObjectIfNeeded(classDescriptor),
                 typeParameters,
                 semanticServices.getDescriptorResolver().resolveParameterDescriptors(functionDescriptorImpl, parameters),
                 semanticServices.getTypeTransformer().transformToType(returnType),
diff --git a/compiler/testData/diagnostics/tests/regressions/kt498.jet b/compiler/testData/diagnostics/tests/regressions/kt498.jet
new file mode 100644
index 00000000000..91e85567a83
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt498.jet
@@ -0,0 +1,8 @@
+// KT-498 Very strange error in the type checker
+// +JDK
+
+class IdUnavailableException() : Exception() {}
+
+fun <T : Any> T.getJavaClass() : Class<T> {
+    return ((this <!CAST_NEVER_SUCCEEDS!>as<!> Object).getClass()) as Class<T> // Some error here, because of Exception() used above. ?!!!
+}