diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
index bc9a03f608c..6715e8b1965 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
@@ -16,6 +16,7 @@
 
 package org.jetbrains.jet.lang.types.expressions;
 
+import com.google.common.base.Predicate;
 import com.google.common.collect.Lists;
 import com.google.common.collect.Multimap;
 import com.intellij.lang.ASTNode;
@@ -39,6 +40,7 @@ import org.jetbrains.jet.lang.resolve.constants.*;
 import org.jetbrains.jet.lang.resolve.constants.StringValue;
 import org.jetbrains.jet.lang.resolve.name.LabelName;
 import org.jetbrains.jet.lang.resolve.name.Name;
+import org.jetbrains.jet.lang.resolve.scopes.FilteringScope;
 import org.jetbrains.jet.lang.resolve.scopes.JetScope;
 import org.jetbrains.jet.lang.resolve.scopes.WritableScopeImpl;
 import org.jetbrains.jet.lang.resolve.scopes.receivers.ExpressionReceiver;
@@ -104,14 +106,30 @@ public class BasicExpressionTypingVisitor extends ExpressionTypingVisitor {
         }
         // To report NO_CLASS_OBJECT when no namespace found
         if (classifier != null) {
-            context.trace.report(NO_CLASS_OBJECT.on(expression, classifier));
+            if (!context.namespacesAllowed) {
+                context.trace.report(NO_CLASS_OBJECT.on(expression, classifier));
+            }
             context.trace.record(REFERENCE_TARGET, expression, classifier);
-            return classifier.getDefaultType();
+            JetScope scopeForStaticMembersResolution = classifier instanceof ClassDescriptor
+                                                       ? getStaticNestedClassesScope((ClassDescriptor) classifier)
+                                                       : JetScope.EMPTY;
+            return new NamespaceType(referencedName, scopeForStaticMembersResolution);
         }
         temporaryTrace.commit();
         return result[0];
     }
 
+    @NotNull
+    private static JetScope getStaticNestedClassesScope(@NotNull ClassDescriptor descriptor) {
+        JetScope innerClassesScope = descriptor.getUnsubstitutedInnerClassesScope();
+        return new FilteringScope(innerClassesScope, new Predicate<DeclarationDescriptor>() {
+            @Override
+            public boolean apply(@Nullable DeclarationDescriptor descriptor) {
+                return descriptor instanceof ClassDescriptor && !((ClassDescriptor) descriptor).isInner();
+            }
+        });
+    }
+
     protected boolean furtherNameLookup(@NotNull JetSimpleNameExpression expression, @NotNull Name referencedName, @NotNull JetType[] result, ExpressionTypingContext context) {
         if (context.namespacesAllowed) {
             result[0] = lookupNamespaceType(expression, referencedName, context);
diff --git a/compiler/testData/diagnostics/tests/ClassObjects.kt b/compiler/testData/diagnostics/tests/ClassObjects.kt
index 716806c23f3..bc1e6576e87 100644
--- a/compiler/testData/diagnostics/tests/ClassObjects.kt
+++ b/compiler/testData/diagnostics/tests/ClassObjects.kt
@@ -21,7 +21,7 @@ object b {
 }
 
 val a = A.x
-val c = <!NO_CLASS_OBJECT!>B<!>.x
+val c = B.<!UNRESOLVED_REFERENCE!>x<!>
 val d = b.<!UNRESOLVED_REFERENCE!>x<!>
 
 val s = <!NO_CLASS_OBJECT!>System<!>  // error
diff --git a/compiler/testData/resolve/ClassObjects.jet b/compiler/testData/resolve/ClassObjects.jet
index b661ddd2b53..f7574a7e1bf 100644
--- a/compiler/testData/resolve/ClassObjects.jet
+++ b/compiler/testData/resolve/ClassObjects.jet
@@ -11,5 +11,4 @@ package Jet86
 }
 
 val a = `A`A.`A.x`x
-val c = `B`B.`B.x`x
 val d = B().`B.x`x
\ No newline at end of file
diff --git a/idea/testData/checker/ClassObjects.kt b/idea/testData/checker/ClassObjects.kt
index cc43a7556ae..7a36c4b4000 100644
--- a/idea/testData/checker/ClassObjects.kt
+++ b/idea/testData/checker/ClassObjects.kt
@@ -20,7 +20,7 @@ object b {
 }
 
 val a = A.x
-val c = <error>B</error>.x
+val c = B.<error>x</error>
 val d = b.<error>x</error>
 
 val s = <error>System</error>  // error
diff --git a/idea/testData/javaFacade/ea38770.kt b/idea/testData/javaFacade/ea38770.kt
index 9c02663cfc0..de85a1894ba 100644
--- a/idea/testData/javaFacade/ea38770.kt
+++ b/idea/testData/javaFacade/ea38770.kt
@@ -1,3 +1,3 @@
-fun <T> foo() {
+fun <T> foo() where class object T : Any {
     T.<caret>toString()
 }