B747-800 Captain reported a pallet containing Hazmat cargo was leaning against the bulkhead wall during pre-flight. Since the cargo package was damaged it was determined to offload and depart without the damaged pallet.

Narrative

During the preflight inspection; we discovered the cargo on the pallet at Main Deck position Mandatory Procedure was leaning against the bulkhead wall. Various ideas were proffered; one of which included using ratchet straps to pull the load upright. As the pallet contained lithium ion batteries contained in equipment; we did not feel comfortable allowing further compression or pressure to be applied unevenly to a load which was completely covered in black plastic. We suggested that an inspection of the cargo itself be done to determine the integrity of the packages on the pallet. As a side note; the Dangerous Goods Management states; 'No employee or contractor may load any package; outside container; or overpack containing dangerous goods into a freight container; or onto a pallet unless immediately prior to doing so; that person has inspected the exterior of the package; outside container; or overpack and determined that it has no holes; leakage; or other obvious indications that its integrity has been compromised.' During the visual inspection of the packages; it was immediately apparent that nearly every package on the pallet was crushed; damaged; or otherwise had compromised integrity. As soon as this discover was made; we asked that the pallet be offloaded; inspected; repacked; and reloaded in an acceptable manner. The station made the decision to remove the pallet and; in the interest of time; allow us to depart without that pallet or its load of cargo.Cause: overloading the pallet with packages.Suggestions: Build the pallet in such a way that the contents are not prone to being crushed by their own weight. Audit origin station loading and inspection procedures.