diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
index 4e54884790a..a149ef32b69 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/PositioningStrategy.java
@@ -53,9 +53,6 @@ public class PositioningStrategy<E extends PsiElement> {
     protected static boolean hasSyntaxErrors(@NotNull PsiElement psiElement) {
         if (psiElement instanceof PsiErrorElement) return true;
 
-        PsiElement lastChild = psiElement.getLastChild();
-        if (lastChild != null && hasSyntaxErrors(lastChild)) return true;
-
         PsiElement[] children = psiElement.getChildren();
         if (children.length > 0 && hasSyntaxErrors(children[children.length - 1])) return true;
 
diff --git a/compiler/testData/diagnostics/tests/resolve/resolveWithRedeclarationError.kt b/compiler/testData/diagnostics/tests/resolve/resolveWithRedeclarationError.kt
new file mode 100644
index 00000000000..dd5e6721d8a
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/resolveWithRedeclarationError.kt
@@ -0,0 +1,34 @@
+package c
+
+fun z(<!UNUSED_PARAMETER!>view<!>: () -> Unit) {}
+
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+<!CONFLICTING_OVERLOADS!>fun x()<!> = z { z { z { z { z { z { z { z { } } } } } } } }
+
+class <!CONFLICTING_OVERLOADS!>x()<!> {}
+
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 3e61475106b..d8339459aa4 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -5202,6 +5202,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/resolve/resolveWithGenerics.kt");
             }
             
+            @TestMetadata("resolveWithRedeclarationError.kt")
+            public void testResolveWithRedeclarationError() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/resolve/resolveWithRedeclarationError.kt");
+            }
+            
             @TestMetadata("resolveWithSpecifiedFunctionLiteralWithId.kt")
             public void testResolveWithSpecifiedFunctionLiteralWithId() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/resolve/resolveWithSpecifiedFunctionLiteralWithId.kt");