more localness

src/reflect/scala/reflect/internal/Symbols.scala

@@ -1025,14 +1025,13 @@ trait Symbols extends api.Symbols { self: SymbolTable =>
     )
     /** Is this symbol effectively final or a concrete term member of sealed class whose children do not override it */
     final def isEffectivelyFinalOrNotOverridden: Boolean = {
-      def hasLocalOwner(c: Symbol) = { val k = c.originalOwner; k != NoSymbol && k.isTerm }
       def isNotOverriddenAt(c: Symbol, hasLocalOwner: Boolean): Boolean = {
-        def checkOverrideIn(sc: Symbol) = overridingSymbol(sc) == NoSymbol && isNotOverriddenAt(sc, hasLocalOwner)
+        def checkOverrideIn(sc: Symbol) = overridingSymbol(sc) == NoSymbol && isNotOverriddenAt(sc, hasLocalOwner || sc.originalOwner.isTerm)
         c.isClass && (c.isEffectivelyFinal || {
           (c.isSealed || hasLocalOwner) && c.children.forall(checkOverrideIn)
         })
       }
-      isEffectivelyFinal || isTerm && !isDeferred && isNotOverriddenAt(owner, hasLocalOwner(originalOwner))
+      isEffectivelyFinal || isTerm && !isDeferred && isNotOverriddenAt(owner, owner.originalOwner.isTerm)
     }
 
     /** Is this symbol owned by a package? */

test/files/pos/t9414.scala

@@ -40,3 +40,39 @@ object E {
     def notBar = 42
   }
 }
+
+class F {
+  def foo = {
+    class Parent {
+      @tailrec def bar: Int = {
+        println("here we go again")
+        bar
+      }
+    }
+    class K {
+      class Child extends Parent {
+        def notBar = 42
+      }
+      class GrandChild extends Child {
+        def neitherBar = 42
+      }
+    }
+  }
+}
+
+class G {
+  sealed class Parent {
+    @tailrec def bar: Int = {
+      println("here we go again")
+      bar
+    }
+  }
+  def foo = {
+    class Child extends Parent {
+      def notBar = 42
+    }
+    class GrandChild extends Child {
+      def neitherBar = 42
+    }
+  }
+}