Michael told RadarOnline.com: "Lindsay was hysterical last night. She was crying and upset.
"Lindsay said 'Dina is destroying me!' Lindsay said that Dina does to her what she does to me! "
Michael claims his 26-year-old daughter has begged him for help with her mother.
He added: "She said that she wanted me to fly up there now. She doesn't want her mother to demean her anymore."
Gossip website TMZ has obtained a recording of the call Lindsay made to her father, in which she accused her mother - who she had been at a New York nightclub with until 4am - of being "on cocaine".
She said in the call: "Dad, she's on cocaine. She's like touching her neck, and s**t."
According to the 'Liz & Dick' star, the row broke out after Lindsay asked her mother for $40,000, which she had loaned Dina when she said she needed it to save her home from foreclosure.
Lindsay told her dad: "She's saying disgusting things to me ... I'm dead to her now."
She then said her mother called her "nuts" and added: "She's like the f**king devil right now."
The actress - who suffered a cut on her leg during the altercation - also directed her anger at Michael, saying: "This is what you do. You ruin people."