The leading aim of this paper is to portray the constitutional institution of compensation liability for unlawful acts of public authorities in Polish law related to the development of general principle concerning democratic rule of law. Compensation for damages brought upon the citizens by civil servants constitutes a basic pillar of contemporary democratic state, because it guarantees acting by public authorities in compliances with law and deepen trustfulness. It is also said that the state of the above–mentioned institution indicates the development of democracy.