The article consists of a review of judicial decisions and scholarly opinions with respect to the treasury’s liability for damages. The historical review part discusses the regulation binding in this respect during the Second Republic of Poland (1918–1939) and the People’s Republic of Poland (1944–1989). The part devoted to article 77 of the current Constitution of Poland reviews the opinions of Polish scholars concerning the legal character of this norm. The basic aim of the paper was to provide an answer to the question whether the said norm is legally binding or it is just a declaration. An attempt was also made to determine whether the broadly understood rule of compensation for damages is adequately regulated by the provisions of article 417¹ § 1 of the Polish Civil Code. The article also presents an analysis of article 77 with regard to grounds for liability. The final part of the article describes the relation between article 77 of the Constitution and article 417¹ § 1 of the Polish Civil Code which regulates the state’s responsibility for legal injustice (a situation where a legal act is found inconsistent with superior laws and therefore damage has occurred).