diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/Renderers.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/Renderers.java
index 50c3bd31d31..cb6d963549e 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/Renderers.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/Renderers.java
@@ -277,15 +277,18 @@ public class Renderers {
                 .table(newTable().
                         descriptor(inferenceErrorData.descriptor));
 
-        JetType type = ConstraintsUtil.getValue(inferenceErrorData.constraintSystem.getTypeConstraints(typeParameterDescriptor));
+        JetType inferredValueForTypeParameter = ConstraintsUtil.getValue(inferenceErrorData.constraintSystem.getTypeConstraints(typeParameterDescriptor));
+        assert inferredValueForTypeParameter != null;
         JetType upperBound = typeParameterDescriptor.getUpperBoundsAsType();
-        JetType substitute = inferenceErrorData.constraintSystem.getResultingSubstitutor().substitute(upperBound, Variance.INVARIANT);
+        JetType upperBoundWithSubstitutedInferredTypes = inferenceErrorData.constraintSystem.getResultingSubstitutor().substitute(upperBound, Variance.INVARIANT);
+        assert upperBoundWithSubstitutedInferredTypes != null;
 
+        Renderer<JetType> typeRenderer = result.getTypeRenderer();
         result.text(newText()
                             .normal(" is not satisfied: inferred type ")
-                            .error(type)
+                            .error(typeRenderer.render(inferredValueForTypeParameter))
                             .normal(" is not a subtype of ")
-                            .strong(substitute));
+                            .strong(typeRenderer.render(upperBoundWithSubstitutedInferredTypes)));
         return result;
     }
 
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/TabledDescriptorRenderer.java b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/TabledDescriptorRenderer.java
index 048dc67386d..7f2cad296f9 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/TabledDescriptorRenderer.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/diagnostics/rendering/TabledDescriptorRenderer.java
@@ -152,6 +152,11 @@ public class TabledDescriptorRenderer {
         return result.toString();
     }
 
+    @NotNull
+    public Renderer<JetType> getTypeRenderer() {
+        return Renderers.RENDER_TYPE;
+    }
+
     protected void renderText(TextRenderer textRenderer, StringBuilder result) {
         for (TextElement element : textRenderer.elements) {
             result.append(element.text);
@@ -179,7 +184,7 @@ public class TabledDescriptorRenderer {
         boolean hasReceiver = receiverType != null;
         if (hasReceiver) {
             result.append("receiver: ");
-            result.append(Renderers.RENDER_TYPE.render(receiverType));
+            result.append(getTypeRenderer().render(receiverType));
             result.append("  arguments: ");
         }
         if (argumentTypes.isEmpty()) {
@@ -190,7 +195,7 @@ public class TabledDescriptorRenderer {
         result.append("(");
         for (Iterator<JetType> iterator = argumentTypes.iterator(); iterator.hasNext(); ) {
             JetType argumentType = iterator.next();
-            String renderedArgument = Renderers.RENDER_TYPE.render(argumentType);
+            String renderedArgument = getTypeRenderer().render(argumentType);
 
             result.append(renderedArgument);
             if (iterator.hasNext()) {
diff --git a/idea/src/org/jetbrains/jet/plugin/highlighter/HtmlTabledDescriptorRenderer.java b/idea/src/org/jetbrains/jet/plugin/highlighter/HtmlTabledDescriptorRenderer.java
index a1288d17bd1..47d0f6b5126 100644
--- a/idea/src/org/jetbrains/jet/plugin/highlighter/HtmlTabledDescriptorRenderer.java
+++ b/idea/src/org/jetbrains/jet/plugin/highlighter/HtmlTabledDescriptorRenderer.java
@@ -21,6 +21,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
 import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
+import org.jetbrains.jet.lang.diagnostics.rendering.Renderer;
 import org.jetbrains.jet.lang.diagnostics.rendering.TabledDescriptorRenderer;
 import org.jetbrains.jet.lang.diagnostics.rendering.TabledDescriptorRenderer.TableRenderer.DescriptorRow;
 import org.jetbrains.jet.lang.diagnostics.rendering.TabledDescriptorRenderer.TableRenderer.FunctionArgumentsRow;
@@ -38,6 +39,13 @@ import static org.jetbrains.jet.plugin.highlighter.IdeRenderers.strong;
 
 public class HtmlTabledDescriptorRenderer extends TabledDescriptorRenderer {
 
+
+    @NotNull
+    @Override
+    public Renderer<JetType> getTypeRenderer() {
+        return IdeRenderers.HTML_RENDER_TYPE;
+    }
+
     @Override
     protected void renderText(TextRenderer textRenderer, StringBuilder result) {
         for (TextRenderer.TextElement element : textRenderer.elements) {
@@ -107,7 +115,7 @@ public class HtmlTabledDescriptorRenderer extends TabledDescriptorRenderer {
         result.append("</table>");
     }
 
-    private static void renderFunctionArguments(
+    private void renderFunctionArguments(
             @Nullable JetType receiverType,
             @NotNull List<JetType> argumentTypes,
             Predicate<ConstraintPosition> isErrorPosition,
@@ -121,7 +129,7 @@ public class HtmlTabledDescriptorRenderer extends TabledDescriptorRenderer {
             if (isErrorPosition.apply(ConstraintPosition.RECEIVER_POSITION)) {
                 error = true;
             }
-            receiver = "receiver: " + strong(IdeRenderers.HTML_RENDER_TYPE.render(receiverType), error);
+            receiver = "receiver: " + strong(getTypeRenderer().render(receiverType), error);
         }
         td(result, receiver);
         td(result, hasReceiver ? "arguments: " : "");
@@ -138,7 +146,7 @@ public class HtmlTabledDescriptorRenderer extends TabledDescriptorRenderer {
             if (isErrorPosition.apply(ConstraintPosition.getValueParameterPosition(i))) {
                 error = true;
             }
-            String renderedArgument = IdeRenderers.HTML_RENDER_TYPE.render(argumentType);
+            String renderedArgument = getTypeRenderer().render(argumentType);
 
             tdRight(result, strong(renderedArgument, error) + (iterator.hasNext() ? strong(",") : ""));
             i++;
diff --git a/idea/testData/diagnosticMessage/upperBoundViolated.kt b/idea/testData/diagnosticMessage/upperBoundViolated.kt
new file mode 100644
index 00000000000..82991ee56c4
--- /dev/null
+++ b/idea/testData/diagnosticMessage/upperBoundViolated.kt
@@ -0,0 +1,7 @@
+package i
+
+fun foo<R, T: List<R>>(r: R, list: T) {}
+
+fun test1(i: Int, collection: Collection<Int>) {
+    foo(i, collection)
+}
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/upperBoundViolated1.html b/idea/testData/diagnosticMessage/upperBoundViolated1.html
new file mode 100644
index 00000000000..10361c3074d
--- /dev/null
+++ b/idea/testData/diagnosticMessage/upperBoundViolated1.html
@@ -0,0 +1,32 @@
+<!-- upperBoundViolated1 -->
+<html>
+Type parameter bound for <b>
+T</b>
+ in <table>
+<tr>
+<td width="10%">
+</td>
+<td align="right" colspan="2" style="white-space:nowrap;font-weight:bold;">
+<b>
+fun</b>
+ &lt;R, T : jet.List&lt;R&gt;>
+ foo</td>
+<td style="white-space:nowrap;font-weight:bold;">
+(</td>
+<td align="right" style="white-space:nowrap;font-weight:bold;">
+r : R,</td>
+<td align="right" style="white-space:nowrap;font-weight:bold;">
+list : T</td>
+<td style="white-space:nowrap;font-weight:bold;">
+)</td>
+<td style="white-space:nowrap;font-weight:bold;">
+ : Unit</td>
+</tr>
+</table>
+ is not satisfied: inferred type <font color=red>
+<b>
+jet.Collection&lt;jet.Int&gt;</b>
+</font>
+ is not a subtype of <b>
+jet.List&lt;jet.Int&gt;</b>
+</html>
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java b/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
index 92b7b4d814a..8fcdfe2683a 100644
--- a/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
@@ -102,4 +102,8 @@ public class DiagnosticMessageTest extends JetLiteFixture {
     public void testInaccessibleOuterClassExpression() throws Exception {
         doTest("inaccessibleOuterClassExpression", 1, Errors.INACCESSIBLE_OUTER_CLASS_EXPRESSION);
     }
+
+    public void testUpperBoundViolated() throws Exception {
+        doTest("upperBoundViolated", 1, Errors.TYPE_INFERENCE_UPPER_BOUND_VIOLATED);
+    }
 }