I'm wondering who is really at fault. There was no designated cycling lane. Heres's an alternative viewpoint:

The cyclist was passing cars on the right, riding on the shoulder, not the lane. I think this would be a similar situation to when a cyclist is passing cars on the right near and at an intersection, and a car makes a legal right hand turn and the cyclist T-bones the car. In that case, I believe the cyclist is at fault because it is not legal for any vehicle - including cyclist - to pass on the right at an intersection where right turns are legal.

The car, I believe, is not obliged to yield to any vehicle approaching from behind on the shoulder, because that passing vehicle is not operating legally. I also believe it is probably legal for the car to go around a left turning car by using part of the shoulder. At any rate, I doubt if it is any more illegal than the cyclist passing on the right in this situation.

In addition, it could very well be that the driver could not have seen the cyclist even if he/she exercised reasonable diligence in looking. If the cyclist is that close, it could have easily been in the blind spot. And reasonable diligence in this case would not necessarily require stopping and making sure nobody was passing on the right - because that is not a legal maneuver, and should not be expected.

Do cyclists have the right to pass cars on the right without exercising due care to avoid colliding with cars making legal maneuvers in front of them?

Regardless, based on my own personal experience riding for many years in traffic, this situation is entirely predictable and it is up to the cyclist to avoid it. If you're coming to an intersection passing cars on the shoulder you have to expect, and be prepared for legal right hand turns as well as normal traffic maneuvers such as cars encroaching on the shoulder to go around left turners. If a cyclist is using the shoulder to pass through an intersection it is totally up to him/her to avoid these things. I wouldn't be at all surprised if when all the facts come out, the cyclist is cited and/or asked to pay damages.

Just another way of looking at the situation. I am making no comment on the driver taking off. That's just plain wrong, no matter who's at fault.